There are avenues for those looking to profit from more downside in gold. For instance, the ProShares UltraShort Gold (NYSEArca: GLL) provides a two times inverse or -200% daily performance of gold bullion.

Alternatively, ETN options include the DB Gold Double Short ETN (NYSEArca: DZZ), which tries to generate the twice inverse or -200% return of the daily performance of gold; DB Gold Short ETN (NYSEArca: DGZ), which tries to reflect the inverse of gold price movements; and VelocityShares 3x Inverse Gold ETN (NYSEArca: DGLD), which tries to reflect the performance of three times the inverse or -300% daily performance.

“Hedge funds and other large speculators pared their net-long positions by 23 percent to 41,247 contracts in gold futures and options in the week ended Dec. 27, according to U.S. Commodity Futures Trading Commission figures published three days later,” according to Bloomberg.

For more information on the gold market, visit our gold category.

SPDR Gold Shares (NYSEArca: GLD)

Tom Lydon’s clients own shares of GLD.