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
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