Gold notches biggest annual loss in 32 years

Jan 01 2014, 13:38 IST
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Gold price notched up biggest annual decline in three decades as prospects for economic recovery prompted investors to switch to riskier assets like equities. Gold price notched up biggest annual decline in three decades as prospects for economic recovery prompted investors to switch to riskier assets like equities.
SummaryAfter a 12-year bull run, gold shed 28 per cent in 2013 as investors switched to riskier assets.

since 2004. Prices fell 30 percent in Swiss francs and 29 percent in British pounds.

FUND LIQUIDATION

A drop in exchange-traded fund holdings showed investors had lost faith in bullion as a hedge against inflation and an alternative investment after the U.S. Federal Reserve announced plans to trim its monthly bond purchases.

Holdings in the SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.37 percent to 798.22 tonnes on Monday, their lowest since January 2009.

In Singapore, premiums for gold bars were unchanged at $1.50 an ounce to spot London prices, while in Hong Kong, offers stood at between $1.50 and a high of $2.00.

Silver was down 1.13 percent to $19.43 an ounce. Silver is down 36 percent this year in its worst annual performance since at least 1982, making it the worst-performing precious metal in 2013.

Spot platinum was up 0.8 percent at $1,376.0 an ounce and on course to post an 11 percent annual loss. Best-performing palladium rose 0.9 percent to $718.10 an ounce and was ending year up 2 percent.

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