SPDR Gold Shares (NYSEArca: GLD) was down more than 3% on Friday to its lowest price level since 2011 as the precious metal was on track for its third straight weekly decline.
GLD saw its heaviest trading volume in over a year.
Gold has been caught in a downtrend since October 2012 and bullish sentiment is falling on signs the global economy is improving and lower safe-haven demand. A rebound in the U.S. dollar this year has also been a headwind.
Now, technical analysts say the metal could sell off more if prices fall through a key support line that has been in place for over a year.
GLD has seen net outflows of $8.6 billion this year to lead all ETFs, according to IndexUniverse data. [Gold Falls Amid ‘Steady, Large’ Outflows from Bullion ETFs]
Bullion holdings in the gold ETF reached 1,181.4 metric tons yesterday, the lowest in almost three years, Bloomberg reports.