Home » Industry News » Gold Caps Biggest Annual Rout Since ’81 as Investors Lose Faith

Gold Caps Biggest Annual Rout Since ’81 as Investors Lose Faith

Gold futures, which reached a six-month low today, posted the largest period falloff in three decades as an improving economy cut demand for wealthiness protection. Silver touched the worst since July.

Bullion futures for February delivery drop 0.1% to locate at $1,202.30 an ounce at 1:39 p.m. on the Comex in New York, after reaching $1,181.40, the worst since June 28. Prices drop 28% this year. Investors lost faith in the metal as a stock of amount as equities rallied and an economic recovery prompted the Federal Reserve to pare its $85 billion in monthly bond purchases. Silver dropped 36% in 2013 to $19.37 an ounce, thegreatest period decrease since 1981.

Assets in exchange-traded products backed by gold drop 33 {percent#pct#proportion#proportionality#} to the worst since 2009 amid sales by billionaires George Soros and John Paulson. Disposals of 867.8 metric tons in 2013 were more than the combined inflows in the prior three years, data compiled by Bloomberg appear. The Standard & Poor’s 500 Index of shares climbed 29% and is set for its best year since 1997, while the International Monetary Fund signaled this month the U.S. economy will increase more than forecasting.

“The fear of tapering and the spectacular performance of the equity market have worked against gold this year,” Bart Melek, the head of commodity strategy at TD Securities in Toronto, said in a telephone interview. “The haven premium has dwindled substantially with the economy showing signs of improvement. Prices could decrease to $1,125 before March as there are no reasons to buy gold.”

Silver is the second-worst performer in the S&P GSCI Spot Index of 24 commodities, which declined 2.2%. The MSCI All-Country World of equities climbed 20%, while the dollar rose 3.4% against a 10-currency basket. The Bloomberg Treasury Bond Index drop 3.2%.

This article comes from eBullion, Inc. US Stock Symbol(EBML) shares of listed companies to reprint, please indicate the source