Short positions in the world’s largest gold exchange traded fund have decreased by over half during the past month, as investors look to the gold rally of 2010 continuing into the New Year.

The SPDR Gold Trust, an exchange traded fund traded on the New York Stock Exchange, is backed by holdings in gold bullion. Short positions in the ETF fell from £1.7bn on loan on November 24, to £643m on December 31. The ETF currently holds 1,281 tonnes of gold, approximately 50% of annual gold mine production.