29.05.201405:09:05UTC+00Gold Fall Further Under $1,300 as Exchange-Traded Assets Plummet

Gold value drops further as exchange-traded assets fall at its lowest since 2009. Continuing its 15-week decline, gold futures amounted to $1,256.10 an ounce today. It was the bullion's lowest price since February. The decline is associated with the US equities rise to record highs as investors continue to underpin them. As a result, exchange-traded assets backed by gold are near its lowest since 2009.

Gold's first-quarter surge caused by the Ukraine and Russian tension plus the UK and US economic slowdown from the massive winter was easily erased as US equities rise again. Futures have dropped 9.1% from mid-March, this year's high.

James Shelton, chief investment officer of Kanaly Trust Co. said, “I don't see any reason for gold to go higher. Equities continue to be the choice of investors. Unless inflation suddenly flares up, I would bet on lower gold prices”. 

April saw a less than 1% gain for the futures and metal's 30-day volatility plummeted to it's lowest last week. Gold prices dropped 2.8% in May as S&P500's GSCI Spot Index had little movement. From May 23, future prices average $44, a striking difference from the $190 value it had from the first quarter of the year. Founder of Optionsellers.com James Cordier predicted that gold might even fall as low as $1,150 by the end of the year due to the narrow spread and reduced price swings.