GLD, the gold ETF, has seen outflows of $370 million the past week, according to IndexUniverse data.
“The open-ended nature of QE3 is only likely to see increased choppiness in gold, since many investors will be pulling out on fears that the Fed could reconsider its ultra-low interest rate guidance and monthly liquidity injections under the ongoing stimulus,” added VTB Capital analysts. “Temporary and, potentially, deeper pullbacks are to be expected, especially given slack physical activity and bullion’s strong correlation to riskier assets.”
SPDR Gold Shares
Full disclosure: Tom Lydon’s clients own GLD and SLV.