World Events Affect Metal ETFs
March 27th at 12:46pm by Tom Lydon
Metal exchange traded funds (ETFs) affected by several factors, including falling inventories on the London Metal Exchange. When oil prices are higher, gold looks more attractive as a hedge against inflation. Gold futures rose on Monday as tension with Iran over the capture of British soldiers pushed oil prices higher. Polya Lesova and Myra Saefong for MarketWatch.com report the unexpected decline in new U.S. home sales along with the rise in oil prices and a softer dollar contributed to the precious metals advance. Gold for April delivery responded to the events and closed up at $663.90 an ounce the streetTracks Gold Trust (GLD) closed up 1% and the Market Vectors-Gold Miners (GDX) rose 0.8%. The iShares Silver Trust (SLV) was also up 1.6%. Today oil prices pulled back slightly as did the metals – gold closed at $662.50.
