* SPDR Gold Trust holdings fall for 7 straight sessions
* On track for biggest-ever monthly outflow
* Bullion losing appeal as safe-haven asset
By Rujun Shen
SINGAPORE, Feb 28 Holdings of SPDR Gold Trust
fell for a seventh straight session on Wednesday in a
record stretch of outflows, as signs of an improving global
economy dull bullion's appeal as a safe-haven asset.
Holdings of the world's biggest gold-backed exchange-traded
fund dropped to a more than six-month low at 1,258.4 tonnes.
They are on course for a record monthly decline after falling
nearly 70 tonnes so far in February.
"It is difficult to motivate people to buy gold (at the
moment)," said Dominic Schnider, an analyst at UBS Wealth
Management in Singapore.
A raft of robust economic data from the world's main
economies has driven a stellar performance by global stock
markets, with the S&P 500 Index climbing more than 6
percent so far this year, compared to gold's nearly 5-percent
Schnider added that although the global economic outlook had
brightened, inflationary pressure remained low as growth was
still gathering momentum, dimming gold's attraction as a hedge
"Monetary policy stays loose, growth accelerates
meaningfully and price pressure builds -- this will be
supportive for gold. But inflation is not there (yet), and we
need to see growth for higher gold prices."
SPDR Gold Trust's holdings marked a record high of 1,353.346
tonnes in December last year. They account for more than half
the total holdings of the world's major gold ETFs tracked by
Reuters, which stood at about 2,267 tonnes as of Feb. 26.
Spot gold hovered just below $1,600 an ounce on
Thursday, down 17 percent from a record high of $1,920.30 hit in
Speculative investors have become much less bullish on gold.
They cut the net long positions in U.S. gold futures and options
to the lowest since late 2008 in the week to Feb. 19, data from
the U.S. Commodity Futures Trading Commission showed.