The firm US dollar has caused gold to drop temporarily to $1,720 today. Ongoing and robust ETF outflows are weighing on the yellow metal as well, economists at Commerzbank report.

Speculative financial investors have been withdrawing further from gold

“Any significant or lasting rise in the gold price is being precluded not only by the firm US dollar but also by the ongoing and robust ETF outflows.”

“The gold ETFs tracked by Bloomberg registered outflows of 29 tons last week, their most pronounced in eight weeks and the fourth week in a row (with growing momentum).”

“Speculative financial investors have been withdrawing further from gold of late. According to the CFTC’s statistics, their net long positions are at their lowest level in over three years.”