Physically backed gold exchange traded funds were at the weak streak this week despite the advances of uncertainty encapsulating the current government showdown. This was further elucidated by the SPDR Gold Shares (NYSEArea: GLD) which plummeted 0,3 % earlier this week along with the GLD is gaining 11.2 % over the course of three successive months.
In a recent turn of trade events, Gold futures were 0.7 % lower this week which are presently being traded at $1,330 per ounce which prompted many speculating buyers to liquidate positions ahead of the general debt ceiling deadline on Capitol Hill.
Gold is profoundly suffering along with several other commodities and equities according to one among many brokerage service head dealers in a separate Bloomberg article which is tantamount to general asset liquidation wherein people want actively be included within the sidelines mainly because of the generated and widespread risk and several uncertainties looming the market.
Gold prices have been on the intensification phase in the third quarter, especially after the unexpected accommodating arrangement which was strongly maintained by the Fed which many were caught unexpectedly.
In the week that ended the month of September, hedge funds’ net-long positions in terms of bullion increased 1.8 % while the shorter bets plummeted by 17 % which was considered the most profound decrease in the past four weeks.
The Fed, however, has made clear statements that the economy is looking quite unhealthy, and the stimulus spouts will be released in full-bore according to a John Stephenson, the managing director at First Asset Investment Management Inc. which basically means that the aforementioned company will be interjecting more into its garnished money supply which many consider a bullish dispute for the precious yellow metal.