Gold Price Falls to $4,540 as ETF Outflows Rise
Gold prices have declined to $4,540, down 19 percent from the year's high. Investors have withdrawn more than $6.7 billion from two major gold ETFs this year.
news.google.comGold prices have fallen to $4,540, a decline of 19 percent from the highest level reached this year. The drop comes as investors continue to sell holdings in major gold exchange-traded funds.
The iShares Gold Trust has seen more than $1.9 billion withdrawn over the same period. These withdrawals have coincided with reduced expectations that the Federal Reserve will lower interest rates this year.
Gundlach, founder of DoubleLine Capital, said in a statement to Fox News that rate cuts are unlikely. He stated that it is not possible to cut interest rates when the two-year Treasury yield is almost 50 basis points above the federal funds rate. The price movement has also been linked to a technical pattern known as a death cross, which occurs when a short-term moving average crosses below a longer-term average.
Key Facts
Story Timeline
4 events- This year
Gold price reached its highest point before declining 19 percent.
1 sourceBenzinga - This year
SPDR Gold Shares ETF recorded over $4.8 billion in outflows.
1 sourceBenzinga - This year
iShares Gold Trust recorded over $1.9 billion in outflows.
1 sourceBenzinga - Recent
Jeff Gundlach stated rate cuts are not possible this year.
1 sourceBenzinga
Potential Impact
- 01
Further ETF outflows could increase selling pressure on gold prices.
- 02
Reduced rate-cut expectations may support higher Treasury yields.
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