Gold Slides Below $1,250

London (June 5)  Gold has continued its descent over the last week and is currently down to $1,245 per ounce. The growing strength of the US dollar is thought to be one reason for subdued gold demand — for buyers outside the US, a stronger dollar makes gold more expensive.

The main routes by which traders and investors gain exposure to gold are exchange-traded gold funds such as the $33bn SPDR Gold Trust (NYSE: GLD.US) ETF, which has fallen by 1.3% over the last week to $120.01, reducing its gains so far this year to just 1.7%. Meanwhile, a London-listed alternative, Gold Bullion Securities (LSE: GBS), has fallen by 0.7% to $119.46 so far this week, eliminating its 2014 gains.