Gold exchange traded funds fell Thursday amid concerns European leaders may not be able to find a workable solution to the debt crisis at a summit this weekend.
SPDR Gold Shares (NYSEArca: GLD) was down more than 1% before the bell. The ETF is on a three-day losing streak.
Gold prices have dropped in lockstep with the equities and commodities markets recently. Many bullion investors are waiting on the next move from Europe at the EU weekend summit.
“The traders for the most part want to hear what concrete action the European union plans on taking to resolve its woes, before they add to current positions,” Miguel Perez-Santalla, vice president at Heraeus Precious Metals Management, said in a report. “It’s looks like were in wait-and-seek mode for now,” he said. [What’s Next for Gold After Pullback?]
Although gold has recovered a bit from its September lows, about an 11% decline, the precious metal has lost some of its safe-haven appeal as its typical inverse correlation to riskier assets has eroded, reported Frank Tang for Reuters. [Gold ETF Correction Raises Question Over Safe-Haven Standing]