Gold holdings have fallen below 2,200 tonnes for the first time since July 2011. A 14th consecutive week of reductions has seen holdings drop by 417 tonnes. Rising stock markets at a time of non-existent inflation has pulled the rug underneath gold.
Hedge funds were net-sellers of all sectors apart from grains and livestock during the week ending May 14. Bets on falling gold prices are now at a record. Sugar and natural gas were also net sold, while soybeans, corn and cotton were bought.