For now, investors are seeking safety in the greenback and U.S. Treasuries, rather than gold.
Bullion is set to end May down for the fourth straight month. Bullion holdings in gold exchange traded products are poised for a third monthly decline, according to Bloomberg data.
Gold posted its worst May performance in three decades, Reuters reported.
“Investors don’t have the same strategic approach to gold as before,” said UBS analysts in the article. “Instead of taking a multi-week or multi-month view, much of the exposure to gold has been on an intra-day bias of late. The market is too highly correlated with risk for many participants’ liking.”
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Full disclosure: Tom Lydon’s clients own GLD.