KITCO NEWS – Persistent liquidations in gold-backed exchange-traded funds (ETF) have continued to pressure the metal, however, investor sentiment may be too bearish, ETF Securities’ research director Mike McGlone told Kitco News. According to McGlone, gold ETF holdings have dropped nearly 50% since its peak in 2012. ‘Total ETF holdings in gold are down this year about 5%, its over 2.5 million ounces, running around 49 million ounces. That’s off from the peak in 2012 around 84 million ounces,’ he said. Silver ETFs, on the other hand, remained unchanged and relatively stable over the same period. ‘The way I see this capitulation — I think is the best way to describe it in ETF holdings — it’s just one of the ducks in the pond of the signs of significant oversold conditions in gold and all the precious metals,’ he noted. Kitco’s spot gold price was last quoted up $10, at $1,103.80 an ounce, as of 4:05pm EDT.
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