Gold Prices Plummet 27% Amid ETF Outflows and Rising Bond Yields

Gold prices have plummeted by over 27% from their January highs due to massive outflows from exchange-traded funds (ETFs) and rising US government bond yields. The SPDR Gold Shares ETF alone saw $12.2 billion in six-month outflows, while the iShares Gold Trust suffered $1.2 billion in outflows in the last 30 days.

Investors have been rotating to growth-oriented technology sectors, with the recently launched Roundhill Memory ETF accumulating over $23 billion in assets. The memory sector, driven by demand for companies like Micron and Sandisk, has attracted capital that would otherwise be invested in gold.

Rising US government bond yields have made fixed-income assets more attractive to investors, further pressuring gold prices. Despite geopolitical risks and inflation fears pushing Fed hike odds to 73%, technical indicators suggest a potential bottom near $3,940.