The Barron’s report goes on to cite a fund manager that says if gold ETFs continue adding new assets, the short gold thesis could incur further damage, forcing traders that are short the yellow or the ETFs to cover those positions. In turn, that scenario could lead to higher prices.

A potential problem for gold this year is that some market observers believe the Fed charting a course for more rate hikes, though at a measured pace, in 2016 sets the stage for further upside in the U.S. dollar. Of course, that would be punishing for gold and other commodities, which are denominated in dollars.

SPDR Gold Shares

Tom Lydon’s clients own shares of GLD.