Yet fund selling, combined with other factors, have made gold's rebounds painfully shallow. Earlier this month, a regulatory filing showed that George Soros sliced his investment in the SPDR Gold Trust in half late last year.
Last week, the flagship gold fund saw its biggest weekly outflow since 2011, which coincided with a sharp reduction in net gold longs to their lowest level since May 2012, according to Commitment of Traders data.
Market indicators suggest that other gold bugs are quickly following suit as bullion's momentum stalls. That means gold's correction could quickly become a full-scale rout if conditions warrant.
Gold is now trading more like a risk asset, rather than as a safe-haven, noted Chuck Butler, President of Everbank World Markets. He calls that "a mistake," given all of the factors that still support a higher gold price.
"I always call gold an uncertainty hedge," Butler said, saying the downward correction would wash out stale positions. "We'll turn up again with people that use gold as an uncertainty hedge for their portfolio."