Gold Sentiment

“I don’t see any reason for gold to go higher,” James Shelton, who helps oversee $2.1 billion as chief investment officer of Kanaly Trust Co. in Houston, said yesterday. “Equities continue to be the choice of investors. Unless inflation suddenly flares up, I would bet on lower gold prices.”

Holdings in global gold ETPs slumped 869 tons in 2013, data compiled by Bloomberg show. An additional 100 tons may be withdrawn this year, Barclays Plc forecasts.

The macro climate is not conducive for higher prices,” Kevin Caron, a Florham Park, New Jersey-based market strategist at Stifel Nicolaus & Co., which manages about $160 billion, said yesterday. “There is less concern about safety of the financial system, so people don’t need a hedge asset.”

http://www.businessweek.com/news/2014-05-27/gold-sinking-as-etp-assets-drop-to-2009-low-commodities