Gold price nearing 5-year low

Gold price fell back towards 5-year lows as the downward impact of a firmer U.S. dollar and weaker demand in major gold buyers weighed on prices. Spot gold price inched down by $3.95 or 0.4 pct and stood at $1,078.46 an ounce by 0608 GMT, Whereas, U.S. gold slipped by 0.6 percent to $1,077.50.

There is a significant contribution from speculative financial investors to bring down gold price since the end of October: two weeks before 10 November, net long positions in gold were cut by 85%, according to CFTC's statistics.