Gold prices fell below $1,780 an ounce on Wednesday morning in the wake of the previous day’s nearly 4% decline after the recent spike to record highs.

Related exchange traded funds such as GLD (SPDR Gold), IAU (iShares Gold), SGOL (ETFS Gold), DGL (PowerShares Gold), SLV (iShares Silver), SIVR (ETFS Silver), and DBS (PowerShares Silver) were falling again Wednesday. [Gold ETFs See Outflows]

That said, there was increased interest in ETF and exchange traded note products that offer “short” or “inverse” exposure both to gold and silver on Tuesday, and volumes in related products were above the norm.

Volumes in GLL (ProShares UltraShort Gold), DZZ (PowerShares DB Gold Double Short ETN), DGZ (PowerShares DB Gold Short ETN), and ZSL (ProShares UltraShort Silver) surged yesterday. [These ETFs Bet Against Gold]

We also note that GLD and SLV were among the top 10 ETFs for daily redemptions on Tuesday as assets clearly were flowing out of lon- based precious metals funds, and into other areas of the market, including products that offer potential short exposure to the metals themselves.

PowerShares DB Gold Double Short ETN

Chart source:

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Full disclosure: Tom Lydon’s clients own GLD and SLV.