Gold stuck near five-year low as selling pressure continues

Wed Jul 22, 2015 9:03pm EDT
 
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MANILA (Reuters) - Gold hovered close to its weakest level since March 2010 early on Thursday, with no convincing recovery in sight after an early-week rout only spurred sellers to cut their exposure.

Holdings in the world's biggest gold-backed exchange-traded fund, SPDR Gold Shares GLD, fell further on Wednesday to the lowest level since 2008.

FUNDAMENTALS

* Spot gold XAU= was little changed at $1,094.33 an ounce by 0033 GMT, after sliding more than 1 percent to $1,086.89 on Wednesday.

* Gold's rout deepened after tumbling as much as 4 percent on Monday in a sell-off exacerbated by big trading volumes on the Shanghai Gold Exchange after investors dumped more than $500 million of bullion in New York in four seconds during early Asian trading hours.

* U.S. gold for August delivery GCcv1 was up 0.2 percent at $1,093.10 an ounce, after a 10-session decline.

* Holdings of SPDR Gold Trust dropped to 22,097,657.77 ounces on Wednesday, the lowest since August 2008, as outflows continued from last week. [GOL/ETF]

* U.S. home resales rose in June to their highest level in nearly 8-1/2 years, a sign of pent-up demand that should buoy the housing market recovery and likely keep the Federal Reserve on track to raise interest rates later this year, denting gold's safe=haven draw.   Continued...

 
Gold bars and granules are pictured at the Austrian Gold and Silver Separating Plant 'Oegussa' in Vienna October 23, 2012. REUTERS/Heinz-Peter Bader