Holdings of gold by global exchange-traded funds rose during the second quarter by 56 tons, said Commerzbank. This was the same as the first quarter.
Unlike in the first three months of the year, however, they lent no buoyancy to the gold price in the last quarter, the bank added.
Although holdings of silver ETFs were increased by 686 tons in the second quarter, the silver price decreased by 9% over the past three months. This is likely to have been due chiefly to speculative financial investors, who withdrew to a major extent in the second quarter.
However, Gold prices hit a seven-month low early Monday as the U.S. dollar stabilized and due to prospects of tighter monetary policy globally.
According to FXTM research analyst Lukman Otunuga, the precious metal bottomed at $1,231.80, its weakest level since May 16.
Although the ongoing uncertainty from Brexit and political risk in the U.S. has the ability to support gold in the longer term, short-term bears remain in control.
From a technical standpoint, the breakdown below $1,240 should encourage a further decline towards $1,220.
Reference: Scrapregister
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