And the selling begins
Reuters is reporting that July saw outflows from all major Gold exchange traded funds. Holdings of the six gold-backed etf funds that Reuters watches fell 3% in July from the previous month.
While this did not make major headlines, it illustrates the weakness in the metals sector. Yes, the dollar did fall to ten month lows today, but gold only rose to a two month high.
Continued selling in the gold ETFs could swamp gold markets and lead to a dramatic sell-off because of the massive amount of sell pressure this would exert on the open gold exchanges as a percentage of average daily volume.