Gold ETF investors hold on despite price fall

Gold price briefly dropped below the $1,200 per troy ounce mark yesterday as U.S stock markets rose significantly, with the U.S. dollar steady against its counterparts. However, in today's early session, gold breached this threshold and was trading below it.

ETF investors continue to hold their positions despite the price slide since last Thursday. Yesterday, Gold ETFs tracked by Bloomberg recorded inflows slightly short of 12 tons; however, the SPDR Gold Trust reported no change in its gold ETF holdings. According to mandatory filings released by the SEC, John Paulson's hedge fund, the largest shareholder in the SPDR Gold Trust, reduced its holdings by 37% in the last quarter of 2015, which was equivalent to sales of 11 tons of the SPDR Gold Trust in the same quarter.