There is also speculation that some investors are selling gold to cover losses elsewhere and raise cash. Gold prices have weakened lately despite growing worries over the Eurozone debt crisis.
“Thinning liquidity, relatively high levels of speculative overhang in gold versus some other precious metals, and a weakening euro [and]strengthening U.S. dollar could make for choppy gold trade in the near term, although it still looks well placed to capitalize on continued debt default concerns in the longer term,” ETF Securities analysts said in a weekly update.
ETFS Physical Swiss Gold Shares ETF
