New York - Gold futures fell, heading for the longest slump in five weeks, as holdings in exchange-traded products backed by the metal extended a decline to the lowest since July 2011.
As of May 10, assets in ETPs dropped 0.6 percent to 2,228 metric tons, according to data compiled by Bloomberg.
Last month, gold futures tumbled into a bear market, and a record $17.9 billion was erased from the value of the funds.
“Without an end to this persistent ETF liquidation, the upside for gold in our opinion is severely constrained,” Marc Ground, a commodity strategist at Standard Bank Plc in Johannesburg, said in a report.
“Clearly, the futures market is not convinced that gold can sustain significant upside.”
Gold futures for June delivery dropped 0.3 percent to $1,432.60 an ounce at 10:46 a.m. on the Comex in New York.
The price headed for the third straight decline, the longest slump since April 4. Through May 10, the metal dropped 14 percent this year.
Speculators held 67,374 so-called short contracts on May 7, 6.4 percent more than a week earlier, US Commodity Futures Trading Commission data showed on May 10.
The net-long position dropped 10 percent to 49,260 futures and options.
“Investors are losing interest in gold,” said Sun Yonggang, a macroeconomic strategist at Everbright Futures, a unit of one of China’s largest state-owned investment companies.
Silver futures for July delivery rose 0.1 percent to $23.68 an ounce on the Comex. - Bloomberg News