Gold Futures Fall as George Soros Reduces Gold Holdings in ETFs

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Financial Spreads: Spread Betting and CFD Trading


Commodities Trading

: 17 May 2013

In commodities spread betting, crude oil bucked the recent trend by spending a day in the black.

It was a volatile session during which the market spent early trading at a loss before finishing strongly and closing at $95.13.

News that billionaire George Soros had reduced his gold holdings in exchange-traded products piled on the misery for gold investors yesterday.

The precious metal will not have been helped by the strengthening dollar and we are currently trading at the $1,380 level for the June futures contract.



Commodities Trading

: 16 May 2013

Crude oil slipped further during yesterday's early trading but managed to claw back losses following an unexpected drop in US stockpiles; 600,000 barrels were wiped off the inventory list.

As a result, the crude oil spread betting market closed relatively unchanged at $94.30.

Gold investors seem to keep taking a battering, with yesterday providing the latest punch.

Gold futures for June delivery ended 2% lower at $1,396, the lowest level for almost a month.

Low inflation numbers from the US and the continuing strength in the dollar provided the main stimulus for the move.



Commodities Trading

: 15 May 2013

US crude closed $0.96 lower at $94.21 yesterday, as the strengthening dollar made the market more expensive for foreign investors.

Increasingly high inventory levels and sluggish demand was also to blame for the declines.

Gold inevitably suffered on what was a 'risk-on' day for spread betting markets. The precious metal fell for its fourth consecutive session on Tuesday, settling at $1,424.

The gold-buying season in India is likely to provide some near-term support in what otherwise looks to be a fairly bleak outlook.



Commodities Trading

: 14 May 2013

The ever increasing supply in an environment that is not raising demand is hampering US crude prices at the moment.

This week may show US stockpiles at their highest levels since the 1930's, whilst growth in the world's most consuming economies, the US and China, still remains sluggish.

Accordingly, the US crude oil futures contract for June delivery closed 0.7% lower at $95.38.

Gold continues to struggle and the start of this week saw another move to the downside.

As risk-averse investors, who had previously turned to gold as a safe haven and inflationary hedge, continue to seek riskier assets, the price of gold will continue to fall.

Despite this, the precious metal is seeing some temporary respite this morning against the weaker dollar.



Commodities Trading

: 13 May 2013

Gold had a tough time on Friday, falling by around $35 at one point before rebounding somewhat to close at $1,442.

The strength of the dollar is partly responsible for the declines as it makes the commodity more expensive for foreign investors.

The strengthening dollar also hurt the price of US crude, with extra downside pressure being added by rising inventory numbers and increased production.

The June futures contract may have closed at $95.88 on Friday but it is considerably lower this morning.



Commodities Trading

: 10 May 2013

Improving economic data raised concerns about the potential for more restrictive US monetary policy and had a negative impact on West Texas Intermediate on Thursday.

The June delivery futures contract went as low as $95.35 only to recover later on and close just $0.22 down at $96.39 per barrel.

In commodities trading, the relatively large appreciation in the dollar was the main driver for the gold price.

This, combined with the positive US employment data, resulted in a 1% fall for the precious metal.



Commodities Trading

: 09 May 2013

A fall in oil inventories at Cushing, one of the largest storage hubs in the US, sparked a continued rally in the price of US crude oil on Wednesday.

In addition, some improved growth numbers out of China will have also fuelled the rise.

The US crude market was even able to close the gap on Brent crude to less than $8 as it closed at $96.50, up 1%. Also see our Brent - US Crude Oil Differential market.

Gold futures had a good day on Wednesday as the contract for June delivery closed $25 higher at $1,475, its highest level for almost a month.

The sharp fall of the dollar supported the rise as well as hopes of surging demand from China in the coming months.



Commodities Trading

: 08 May 2013

US crude saw its first drop in four days yesterday, falling by around $0.30 as the expected news of increasing US stockpiles was confirmed.

Having said that, oil prices did draw some support from the growing tensions between Israel and Syria.

Gold continued to fall on Tuesday as financial spread trading investors turned their attention and resources to equities in search of better returns.

Ultimately, the precious metal closed $20 lower at $1,450.



Commodities Trading

: 07 May 2013

US crude oil has been on a bit of a run lately, but three straight days of gains look set to end this afternoon as stockpiles are predicted to rise.

In advance of the figures, prices have fallen by around half a dollar after the biggest three day gain since last summer.

Gold's efforts to restore some dignity following the crash in mid-April seem to be running out of steam. It is, however, sitting much happier around $150 above the lows.

Physical demand has been hit by the recent rally and CFD trading investors are still looking to invest in riskier assets in what appears to be a very steadily recovering global economy.


By Jonathan Sudaria, 17 May 2013


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