Interest in gold among hedge funds and money managers has been waning in recent weeks as the price has been unable to hold gains above $1,900 an ounce.
However, as speculators were liquidating in the futures market, investors were bargain hunting in the ETF market.
Ole Hansen, head of commodity strategy at Saxo Bank, said that he expects the gold market to stabilize around $1,755 an ounce.
“Considering that gold was set-up for a pullback like a speed bump on the racetrack, with speculative and physical flows slowing, the ongoing pullback likely has more room to run.