Gold declines seventh consecutive session, helped by signs of weakening demand for the precious metal. Reduction in the price of gold is almost completely leveled his recovery after a record decline in mid-April.

The volume of gold in exchange-traded funds holding (ETF), dropped this week to their lowest level since July 2011. Submitted on Wednesday evening, data showed that some hedge funds, including fund headed by George Soros, have reduced their stakes in gold ETF in the 1st quarter.

Investor demand for gold, which is traditionally considered to be safe haven, fell, as U.S. stocks soared to record highs, as fears about the stability of the financial system weakened.

In addition, those market participants who are buying gold as a hedge against inflation, felt that the need for holding the metal is reduced, since inflation in developed countries remains low-key, and Fed officials are discussing the possibility of folding the enabling policy of the central bank.

Report of the World Gold Council showed that global demand for gold in the 1st quarter was the lowest in three years, since a large share of the liquidation in the ETF leveled demand for jewelery, bars and coins.

The cost of the June gold futures on COMEX today dropped to 1357.60 dollars an ounce.