Gold fever is abating, with related exchange traded funds have taking a hit as global factors weigh on gold interest.
The SPDR Gold Shares (NYSEArca: GLD) has declined 14.9% year-to-date as the fund has shed 300 tons of gold. [Gold ETFs Could Shed Another 250 Tons of Bullion: Analysts]
Gold prices have weakened on overseas actions, such as the Cyprus financial crisis and the slower China economic growth, writes Nur Tarkak for The Motley Fool.
In Cyprus, the Cypriot central bank contemplated selling its gold reserves to meet its financial needs, causing panic among gold traders who feared a sudden influx in supply.
In China, a growing market for physical gold, the unexpected slowdown has made economists uncertain about the future of bullion.
Additionally, the rally in the global equities has also lured safe-haven investors away from gold and into riskier assets.
Gold futures were trading around $1,398 per ounce Wednesday. [Gold ETFs Fuel Selling as Prices Try to Hold $1,400]