“The Fed may step up QE or step down QE depending on how the economy performs,” Credit Agricole analyst Robin Bhar said in a Reuters report. “So far, the data seems to be improving, which suggests they’re likely to take their foot off the pedal. That would argue for weaker gold.”
The dollar has been very strong, particularly against the yen, he added. “So it’s difficult to come up with any positives for gold.”
Investors have been pulling money from gold ETFs with bullion in holdings in GLD falling to the lowest levels since early 2009. [Gold Bounce Stalls as ETFs See More Outflows]
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Full disclosure: Tom Lydon’s clients own GLD and SLV.