“What people are concerned about is that the physical ETFs are a major threat in a way, in that if people become convinced that the bull run is unwinding, you may start to see (those inflows) moving in the opposite direction,” Standard Chartered analyst Daniel Smith said in a recent Reuters story. “That can create a vicious circle of selling, and lower prices, and selling. People are watching that very closely.” [Could Gold ETF Outflows Drive ‘Vicious Circle of Selling?’]
Gold ETFs have been stuck in a downtrend the past few months but rose more than 1% on Tuesday and are up the past four trading sessions. [Gold ETFs Rebound as Prices Test $1,600]
SPDR Gold Shares
Full disclosure: Tom Lydon’s clients own GLD.
