By August 8, holdings in exchange-traded products backed by gold rose to a record 2, 217 tons to put that in perspective, last December the SPDR Gold Trust, the largest of such ETFs, held 1, 299 metric tons of gold but that figure had dropped to 1, 272.89 metric tons as of Aug. 11.

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Gero said redemptions in ETFs like SPDR Gold Trust (NYSE: GLD) has created a lot of supply in the market place, which, with the lack of demand, will take a while to work its way through.

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That changed when new data showed nearly 15 metric tons of gold flowed out of the ETFs, with the majority coming from the largest product, SPDR Gold Trust (GLD).

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