Poor Gold Outlook Leading to ETF Holdings Decline

ETF Trends reported that with gold’s short-term outlook looking poor, professional traders are “upping their bearish bets” on the precious metal.

As quoted in the market news:

‘The net-long position in futures and options is at its lowest in 11 weeks after speculators added the most short bets in three months,’ report Megan Durisin and Lydia Mulvany for Bloomberg, citing data from the U.S. Commodity Futures Trading Commission.

The SPDR Gold Shares (NYSEArca: GLD), the world’s largest gold ETF, saw its holdings fall 1.2% last week in the biggest weekly decline since early May, according to Bloomberg.

In dollar terms, GLD lost $378.3 million last week while the iShares Gold Trust (NYSEArca: IAU) lost nearly $7.4 million. That after investors pulled the equivalent of 17 tons of gold from physically-backed ETFs in August.

Click here to read the full ETF Trends report.