SPDR Gold Shares (NYSEArca: GLD) crashed nearly 9% on Monday as more than 90 million shares traded hands, an all-time high.
Monday’s action exceeded the previous volume record of 79.2 million shares set on December 4, 2009.
Not including Monday’s redemptions, GLD had seen net outflows of $9.8 billion year to date, according to IndexUniverse. That is nearly triple the ETF with the next-largest outflows. [Gold ETF Lowest Since 2011 as Key Support May Crumble]
“Gold doesn’t really model well on a supply-demand basis, but those ETF flows are enormous,” Queen Anne’s Gate Capital CIO Kathleen Kelley said in a CNBC.com report.
The CBOE Gold ETF Volatility Index, known as the “Gold VIX,” jumped more than 60% on Monday as bullion prices dropped below $1,400 an ounce, Reuters reports. The benchmark measures the market’s expectations of how volatile SPDR Gold Shares will be in the next month.
GLD is down 23% the past six months with gold falling into a bear market after the 2011 all-time high.
SPDR Gold Shares
Full disclosure: Tom Lydon’s clients own GLD.