Globally listed gold exchange traded products, including the SPDR Gold Shares (NYSEArca: GLD), iShares Gold Trust (NYSEArca: IAU) have recently been struggling and some market observers believe the yellow metal could face more near-term downside.

Over the past month, the benchmark gold ETFs are lower by more than 4% and GLD resides more than 10% below its 52-week high, meeting the definition of a correction.

“Gold prices set new 12-month lows against a rising Dollar on Wednesday in London, touching $1222 per ounce as the US currency rose yet again following weaker-than-expected Eurozone and UK inflation data,” reports Bullion Vault.

Gold ETFs experienced hefty outflows in June as the U.S. dollar strengthened and more traders sought safety in U.S. Treasuries on mounting global tensions.

According to the World Gold Council, gold-backed ETFs experienced outflows in North America and Asia but saw inflows in Europe over June, Reuters reports.

“The two largest US-listed gold ETFs – the SPDR Gold Trust (NYSEArca:GLD) and the iShares Gold Trust (NYSEArca:IAU) – have now shrunk for 3 months running, losing over 100 tonnes between them since end-April’s 18-month peak at 1,159 tonnes,” according to Bullion Vault.

Gold’s Murky Near-Term Outlook

Commodities, including gold, are denominated in dollars, meaning that as the greenback strengthens, commodities often do the opposite. The inverse relationship between gold and the dollar has recently been on display.