Subdued demand for US gold and silver coins in May

Gold is trading at around $1,190 per troy ounce as the new week of trading begins. In early trading the yellow precious metal launched an unsuccessful bid to overcome the psychologically important $1,200 mark. So far, the firm US dollar has thwarted any such attempt. 

In euro terms, gold is trading at €1,085 per troy ounce. After having significantly expanded their net long positions in gold last week, thereby contributing to the rising prices, speculative financial investors have now squared some of their positions again. Net long positions were cut by 16% to 66,200 contracts in the week to 26 May, during which time the gold price dipped by 1.7%, notes Commerzbank. 

Sales of gold coins were likewise weak - recording a three-month low of 21,500 ounces, adds Comerzbank. Thus gold demand has also tended to be meagre in the Western world of late.