GLD gold holdings hit new Yearly Low

Western-based gold investment demand continues to plummet as gold is being sold in order to buy equities. It is a continuation of the theme that has been in place for the majority of 2014. The surging stock market, coupled with a strong Dollar, is undercutting interest in the zero-interest paying asset. 

Add to this recipe falling inflation expectations, and it is looking more and more likely that, barring some sort of unforeseen geopolitical event, gold is not going to be able to stay above the $1200 level.

Take a look at the following two charts which I post very regularly here. The first is the reported holdings of the giant gold ETF, GLD. 

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