Gold got its worst beginning in this quarter of the year, as big investors are under concern about the lengthiest rally from the time of World War I and its ending.
In February, stockholders traded 106.2 metric tons which is equal to the valuation of $5.4 billion in regard to the exchange business products, which was created in the year 2003, as per the information and data compiled. It is also reported that another metric ton of 26.1 was cut off since that time. According to Barclays Plc and Credit Suisse Group AG, it is estimated that the rally of 12 years will get to witness its peak in this year of 2013. On the other hand, George Soros deduced his stake holds in the highest ETP by almost 55 percent within the last quarter. Since the losses of 1997, the prices are now within the range of 4 percent in a bear market for the longest continuous months.
The hedge funds are reviewed to be the least bullish from the year of 2007 with economics moving faster with the policy makers of Federal Reserve. Doubled after the bullions of central bank, which is led by Fed, it has bought debts of more than $3.5 trillion from the month of December 2008, in order to restore the growth process. The global equity of four year stayed at the highest with dollar becoming the strongest in its seven last months, according to the survey of 13 analysts of Bloomberg who have estimated the lowest average price for gold for the year 2014 in comparison to this year.
“It is believed that the global economy is improving. Considering the signs and indications of the US market, there is chance of higher interest rate. It looks like there is scope for fast money movement out of the gold market.” states John Toohey, vice president of USAA Investment, a San Antonio based equity investment organization.
In the current year, there is a drop of 5.6 percent in the gold value in London in comparison to the closing market situation of yesterday. It got a trade ratio of $1,582.55 today which is considered as an average record of $1,669 of previous year. The Standard & Poor’s GSCI measurement, comprising of 24 commodities, rise by 0.3 percent from its starting time of January, where the World Index equities got a high of 6.3 percent. The treasuries of Bank of America show signs of drop by 1.1 percent in the index.
Reducing its forecast of last three months by 12 percent, Goldman Sachs Group Inc is currently at $1,615 in comparison to the estimation by experts at $1,550 in one year. It is stated by Credit Suisse that the value of gold is extremely overrated which is not expected to get back to its September 2011 value record of $1,921.15.