Despite the appreciating US currency, gold in euro terms continues to trade below €1,000 per troy ounce. The gold price has as yet not been able to regain the psychologically important $1,100 per troy ounce mark, the firmer US dollar no doubt putting the brakes on any price recovery here.



"The ongoing ETF outflows are also preventing any increase in the gold price", says Commerzbank.



The gold ETFs tracked by Bloomberg recorded their eighth daily outflow in a row yesterday. After more than 10 tons were withdrawn at the beginning of the week, holdings were reduced by a further 1.8 tons yesterday.



Outflows since the beginning of the month total nearly 55 tons. This means that ETF holdings so far in July have been reduced almost exactly as sharply as they were in March - the month with the most pronounced outflow this year.



Demand for coins, on the other hand, remains very robust, especially in the US: according to figures from the U.S. Mint, 161,500 ounces (5 tons) of gold coins have been sold so far in July. This is not nearly enough to offset the ETF outflows, however.