Total assets in gold exchange traded products reached fresh 5-year lows last week:

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In addition, total assets in the Rydex Precious Metals Fund (an excellent gauge of retail investor sentiment) reached 12-year lows yesterday as investors continue to flee the space in disgust:

It is interesting to note that as funds continue to flow out of the precious metals space, both gold and gold mining shares (as represented by GDX) are not making new lows. Gold remains well bid above $1200 and GDX continues to hang tough with major support near $20. It is a subtle, but potentially meaningful bullish divergence - the space is exhausted with selling and smart money buyers are stepping in at support as weak hands capitulate.

Friday's close (continued mutual/hedge fund tax loss selling into the October 31st fiscal year end) and the $20 level on GDX now take on added importance; a reversal back above the $22 level on a weekly closing basis would be a constructive sign that the worst is behind us, whereas a breakdown below $20 on a weekly closing basis could signal that prices will have to fall to at least the 2008 lows.