Slowing economies in countries that are traditionally gold buyers ( India and China ) . The latest data shows the China economy continuing to slow And India continues to be less than robust.
A shift out of commodities and into equities and bonds , there has been overall weakness in commodities this year, . This could also explain the switch away from gold.
Gold ETFs has been one of key drivers for gold’s rally since 2004, but now hedge fund liquidation has noticeably reduced ETF holdings.
The Cyprus impact and fears other countries may start selling gold , Cyprus may chance to sell their 10 tonnes of gold to find cash for its bailout.
Some contrarians challenge that view. They sees signs that the U.S. economy is losing momentum and is heading for another slowdown, iThe leading indicators of such a future downturn include price trends for important commodities, as well as for Treasury bonds.
Massive easing adoption from the bank of Japan .( That may leads to deflation and not necessarily gold to be hiked ).
