Gold exchange traded funds are losing ground with  gold futures dipping below $1,300 after a Federal Reserve official hinted that it is closer to tapering the bond purchasing program.

The SPDR Gold Shares (NYSEArca: GLD) was down 1.5% Tuesday. GLD has declined 22.4% year-to-date.

Federal Reserve Bank of Dallas President Richard Fisher said a decision to slow purchases is “closer to execution mode,” according to InvestmentNews.

“Bullion was weighed down by comments from Dallas Federal Reserve President Richard Fisher,” James Steel, an analyst at HSBC Securities (USA) Inc., said in the article. Fisher showed the central bank “is now a step closer to withdrawing from its quantitative easing program.”

Gold futures fell 1.6% Tuesday, trading around $1,282 per ounce.

As gold prices declined, physical holdings in GLD also extended losses, dropping to 917.14 metric tons Monday, its lowest level since February 2009.

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