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It just keeps getting worse for gold

·Lawrence Lewitinn
It just keeps getting worse for gold

November is shaping up to be a terrible month for gold (GCG15.CMX).

This has been the worst month for yellow metal in 2 ½ years. The price of bullion is down 7.5% since the start of the month. On Friday, gold traded at $1,052.46, its lowest price in nearly 6 years.

Helping to drive down the price of gold has been the market’s expectations that the Fed will raise interest rates in December. Higher rates are considered bearish for gold because they keep inflation in check.

Holding gold instead of stocks has been a losing trade so far this year. The metal has lost 11% since the start of 2015 while the S&P 500 (^GSPC) is up 1%, even with the brief correction in the equity markets back in August.

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Gold has fallen 45% since its record peak in 2011. In that time, the S&P 500 gained over 80%.

The world’s largest gold fund, the SPDR Gold Trust (GLD), is now down to holding 654.8 tonnes, its lowest level since late 2008.

However, according to the Commodities Futures Trading Commission, money mangers are still net long gold contracts. In its latest report on trading positions, “managed money” is long 91,880 contracts versus short 75,011 contracts. Each contract is for 100 troy ounces.

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[Note: Gold's year-to-date loss has been corrected.]