GLD is down about 15% year to date. The $48.5 billion ETF holds about 1,052 metric tons of bullion, down from nearly 1,351 tons at the end of 2012.
“In the short term, gold prices remain caught between the recent slowdown in US activity and the significant decline in ETF holdings,” Goldman Sachs analysts said in a note, according to BullionVault. “”While the sell-off in gold prices has been faster than we expected, with prices below our near-term forecasts, further unwind of ETF positions would likely continue to precipitate this decline.”
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Full disclosure: Tom Lydon’s clients own GLD.