Outflow of funds from gold ETFs indicates a weakening trend in gold prices.

Earlier this week, investors pulled out $1.27 billion from the SPDR Gold Stocks ETF, marking the largest single-day outflow of funds since 2011. At the same time, the price of gold touched historic highs above $3500, indicating that there may be some profit-taking factors at play. In 2011, similar outflows coincided with the last peak of the super cycle in gold, signaling the start of a long consolidation period for gold that wasn't broken until 2020.