LONDON/MUMBAI (Commodity Online): Are the investors losing interest in gold? With the worries over inflation fading and equity markets showing substantial recovery across the globe, investors are increasingly shying away from gold.

If you want some proof for that just check out the data released by SPDR Gold Trust GLD, world’s largest gold-backed exchange-traded fund.

The gold ETF said its holdings stood at 1,068.90 tonnes as of August 7, down 3.97 tonnes or 0.4 per cent from the previous business day.

Holdings in the trust, which issues securities backed by physical stocks of gold, have been declining due to fading worries about inflation, which has sapped investors’ appetite for bullion as a hedge.

Meanwhile, gold prices declined further on the bullion market in Mumbai on Monday due to sustained selling by stockists coupled with weak trend in overseas markets.

Silver also slipped owing to lack of demand from the industrial users. Gold prices in London held near $955 an ounce on Europe on Monday, with scant demand for physical bullion limiting fresh price gains.

Spot gold was bid at $953.20 an ounce as against $953.80 an ounce late in New York on Friday. US gold futures for December delivery fell by $3.50 to $956 an ounce on the Comex division of the New York Mercantile Exchange.

Silver also eased to $14.45 an ounce as against $14.59 an ounce.

Turning to the domestic market, standard gold (99.5 purity) fell further by Rs 40 per 10 grams to Rs 14,870 from last weekend’s level of Rs 14,910.

Pure gold (99.9 purity) also moved down by a similar margin to Rs 14,940 as against Rs 14,980 previously.

Silver ready (.999 fineness) dropped by Rs 120 per kilo to Rs 23,450 as against Rs 23,570 previously..

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