Gold fell for a third day, descending toward $4,000 an ounce on investors’ concerns the market was overheating after a blistering rally to record highs. Spot gold was down about 0.5% on Thursday, with a technical reset compounded by an exodus of investors from exchange-traded funds. The single-day outflow from gold-backed ETFs on Wednesday was the biggest in five months, according to data compiled by Bloomberg.

Investors are also weighing the prospects for a US-China trade deal to relieve some of the geopolitical tensions that have bolstered demand for haven assets like gold. The metal has dropped nearly 6% in the last two sessions.

“After an overstretched rally, gold is behaving like an elastic band that’s been pulled too far and is now snapping back hard,” said Hebe Chen, an analyst at

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