Gold eases due to strong dollar; ETF demand hits record high


03/03/2012 09:25 AST  Commodityonline

Gold moved lower when it was pressured by a stronger U.S. dollar during European trading hours, although bargain hunting provided some support due to buying on dips, said MKS Finance in a research note.

“In the meantime, holdings in ETFs (exchange-traded funds) gained 238,674 ounces to a record high of 70.76 million, suggesting investors’ keen outlook on the metal,” MKS added.

The mid-week tumbles in prices a “healthy correction rather than the end of the bull run.” Large physical bids were still present during overnight Asian hours, MKS continued.

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