Gold demand falls as US growth improves
Gold prices have dipped by 3.9 per cent since the end of December.
Gold prices have dipped by 3.9 per cent since the end of December.
Demand for gold has fallen markedly due to signs that growth in the US could be improving.
A third month of retail sales upwards movement has resulted in gold prices falling down 3.9 per cent since December 31st, which represents the poorest start to a year since 2001, Bloomberg reports.
Consumer confidence escalated at a greater rate in February than many analysts anticipated, which has had a knock-on effect for the precious commodity, with bets on higher gold prices tumbling to the lowest level seen since December 2008.
James Paulsen, chief investment strategist at Wells Capital Management, said: "As confidence is building in an economic recovery that's sustainable globally, you could lose a bid to gold."
Last week saw the Standard & Poor's GSCI Spot Index of 24 commodities falling by 0.3 per cent – mainly due to silver and cocoa declines, while a 0.2 per cent decline was recorded by the MSCI All Country World Index of equities.
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