NEW YORK (
Gold prices continued a downward spiral on Thursday after a break through key technical support on Wednesday carried more pressure on the yellow metal.
Gold for June delivery at the COMEX division of the CME was dropping $9.90 to $1,386.30 an ounce. The
gold price traded as high as $1,397 and as low as $1,368 an ounce, while the spot price was slipping $3.30, according to Kitco's gold index.
"The gold bears are in near-term technical control and have gained downside momentum with Wednesday's close below the key psychological level of $1,400," Jim Wyckoff, senior analyst at Kitco.com, wrote in a note on Thursday.
Silver prices for July delivery were down 6 cents at $22.60 an ounce, while the
U.S. dollar index was falling 0.24% to $83.58.
The World Gold Council reported on Thursday that gold ETFs saw net outflows of 177 tons in the first quarter of 2013. The World Gold Council's subsidiary World Gold Trust Services sponsors the
SPDR Gold Trust
gold ETF. The report said there wasn't enough physical demand to offset ETF outflows, but
jewelry demand rose 12% against
the same quarter last year.
"There was a decrease in investment demand ... led by ETFs, but overall bars and coins and jewelry were up," Juan Carlos Artigas, head of investment research at the World Gold Council,
said in an interview
Funds also reported major outflows from exchange-traded gold funds as 13-F filings released on Thursday by billionaire George Soros, BlackRock and Northern Trust revealed the first-quarter exodus.
Gold mining stocks were mostly higher on Thursday. Shares of
(GFI - Get Report)
were rising 4.3%, and shares of
(GOLD - Get Report)
were up 4.1%.
Among volume leaders,
(ABX - Get Report)
was adding 0.45%.
SPDR Gold Trust was decreasing 0.25% to $134.30 a share, while
iShares Gold Trust
was off 0.32% at $13.50 a share.
-- Written by Joe Deaux in New York.