Gold: an overview of the market situation

Gold prices fell on Thursday to its lowest level in almost a month amid fears of collapse and the Fed's bond purchases to reduce the volume of metal in the Investment Fund ETF to a minimum since 2009.

Gold prices may fall to show the sixth day in a row and record the worst performance since March 2009.

"The recent strengthening of the U.S. dollar eroded gold's appeal for financial investment," - said the head of ANZ Global Markets Research Tim Riddell. Strengthening U.S. currency makes commodities denominated in it more expensive for holders of other currencies.

The decline in gold exchange-traded fund - ETF - shows that investors switch from gold to stocks. Thus, the volume of metal in the largest gold ETF-oriented world - SPDR Gold Trust - has decreased by 0.43 per cent to 1,047 tonnes on Wednesday - the lowest level since March 2009.

Financial market participants also fear that the U.S. Federal Reserve may decide to curtail loose monetary policy, which is why investing in gold to protect against inflation could lose meaning.

The cost of the June gold futures on COMEX today dropped to 1368.00 dollars an ounce.