Ongoing ETF outflows increasingly becoming burden on gold price

Gold experienced a rollercoaster ride yesterday. Prices were initially kept in check by a firm US dollar, though this changed all of a sudden in the afternoon when new US inflation data suggested that the US Federal Reserve might wait longer before implementing its first interest rate hike. Whereas the US dollar shed its gains in response, gold not only recouped its losses but actually made a significant leap upwards. 

Driven by an enormously high trading volume - according to trade sources, 7,000 contracts were traded within the space of just one minute - gold regained the psychologically important $1,200 per troy ounce mark, notes Commerzbank. The sharp increase proved unsustainable, however, the precious metal could not able to maintain its level.