SPDR Gold Shares (NYSEArca: GLD) bounced the past two days after a sharp decline but the slight rebound hasn’t stopped the investor flight from bullion-backed ETFs.
Outflows from gold ETFs have dropped assets to a fresh four-year low, according to Reuters.
GLD, the largest gold ETF, saw its bullion holdings fall to about 968 metric tons on Monday, the lowest level since February 2009.
The $38.7 billion fund is down about 25% year to date. Gold ETFs have been hit hard by ebbing inflation concerns and a rise in real interest rates with the Federal Reserve signaling it could scale back its bond purchases as early as this year. [Largest Bullion ETF’s Assets Cut in Half on Gold Plunge, Outflows]
GLD fell nearly 23% in the second quarter alone, the largest loss in its history. The gold ETF was launched in November 2004.