SPDR Gold Shares (NYSEArca: GLD) bounced the past two days after a sharp decline but the slight rebound hasn’t stopped the investor flight from bullion-backed ETFs.
Outflows from gold ETFs have dropped assets to a fresh four-year low, according to Reuters.
GLD, the largest gold ETF, saw its bullion holdings fall to about 968 metric tons on Monday, the lowest level since February 2009.
The $38.7 billion fund is down about 25% year to date. Gold ETFs have been hit hard by ebbing inflation concerns and a rise in real interest rates with the Federal Reserve signaling it could scale back its bond purchases as early as this year. [Largest Bullion ETF’s Assets Cut in Half on Gold Plunge, Outflows]
GLD fell nearly 23% in the second quarter alone, the largest loss in its history. The gold ETF was launched in November 2004.
In fact, gold experienced its worst quarter in at least nine decades, according to Bloomberg. Gold is in danger of seeing its first annual decline since 2000.
“Investors sold 586.5 metric tons as of June 28 from exchange traded products in the past six months, more metal than South African mines extract in three years,” according to the report. “They held 2,045.4 tons valued at $81.8 billion, down from a peak of $147.7 billion in October.”
SPDR Gold Shares
Full disclosure: Tom Lydon’s clients own GLD.