ETF Trends
ETF Trends

Exchange traded funds tracking gold were down 4% Wednesday afternoon following the previous session’s steep pullback as the precious metal corrects following a run above $1,900 an ounce.

Gold futures skidded $100 to below $1,800.

Gold holdings in exchange traded products declined for a third day on Tuesday and the most since January as bullion holdings slid 24.8 metric tons to 2,181.6 tons, Bloomberg reported. Assets climbed to a record 2,216.8 tons on Aug. 8.

Investors pulled almost $1.5 billion from SPDR Gold Shares (NYSEArca: GLD) on Tuesday, IndexUniverse reported.

The $77.5 billion gold fund recently surpassed SPDR S&P 500 (NYSEArca: SPY) as the largest ETF. [ETF Spotlight: GLD]

The gold ETF fell about 4% on Tuesday. [Gold, Silver ETFs Tumble in Stock Rally]

ProShares Ultrashort Gold ETF (NYSEArca: GLL), a leveraged product that profits when gold prices decline, rose about 7% on Wednesday. [ETFs that Bet Against Gold See Trading Volume Rise]

SPDR Gold Shares

Full disclosure: Tom Lydon’s clients own GLD.

The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.