Gold stocks fell to a three-and-a-half year low on Monday, as investors continue to reduce their exposure to bullion and other commodities on weakening economic data from China.
With stocks rising, the dollar strengthening, and U.S. Treasury bond yields holding below 2 percent, investment demand for gold continues to decline. According to BlackRock, gold exchange-traded product outflows have now reached $5.6 billion year-to-date.
Gold futures prices closed down last month for the fifth consecutive time, losing 11 percent and posting their longest losing streak since January 1997.
Meanwhile, the CBOE Gold Index, which is an equal-dollar weighted index composed of 12 companies involved primarily in gold mining and production, is down 25 percent in 2013.