Gold endured its worst one-day performance of 2014 as futures and bullion-backed exchange traded funds were hit with some profit-taking.

The SPDR Gold Shares (NYSEArca: GLD) lost 2.3% on volume that was 64% above the daily average as investors scurried into U.S. stocks and other riskier assets on talk of light physical demand and speculation that Portugal’s banking system is not as bad as off as investors were thinking last week.

One day does not spell the end of gold’s recent rally, but gold bugs should be hoping that volatility picks up again to stoke more upside for the yellow metal and ETFs like GLD. [Positive Technical Signs for Gold ETFs]

“Some prudent diversification into safer assets has been the early second-half trend, with geopolitical risks escalating in the Middle East and Russia, economic risks increasing in Europe and volatility returning to equity markets. Gold and silver were the best performing precious metals last week,” according to a new research note from ETF Securities.

Even with Monday’s drubbing, GLD is up more than 5% since the start of June. Entering Monday, the world’s largest gold ETF, had added nearly $408 million in new assets just this month. [These ETFs are Gaining Assets in July]

Still, some traders view an uptick in broader market volatility as important to further near-term upside for gold and silver.

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