Investors are now divesting their interests in Gold Exchange Traded Funds as rumors of the Federal Reserve's policy change to curb the rally of the precious metal.
In a report by Reuters, eight gold-backed exchange traded products or ETPS had suffered their biggest outflows this quarter, falling by 7.2% from the beginning of 2013 to 70.66 million ounces. New York's SPDR Gold Trust fell by 12% to 39.3 million ounces and remained to be the world's largest gold ETP.
The gold price remained at US$330 after the first gold ETF fund was launched in Australia's Securities Exchange back in March 2003. Gold has since increased by 385% and as many as 45 gold based ETFs have been established in many other bourses. Spot gold values traded at around US$2000 peak in October but have declined by 10% since then.
Equities have increased in the past few months, gold has decreased in value.
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