Commodities-related exchange traded funds (ETFs) and the markets in general are lower so far today as both gold and crude-oil futures consolidated after their recent strong gains. Crude oil for December delivery traded down, amid fading concerns about production disruption in Mexico. Oil prices breached the $93-a-barrel level for the first time Monday, reports Wanfeng Zhou for Thomson Financial.
The markets are down also as investors await the interest-rate decision from the Federal Reserve that comes tomorrow. Traders are pricing in a 92% chance that the Fed will cut its rates to 4.5% from 4.75%. Some of the gold and oil-related ETFs that are affected and their performance year-to-date include:
- The Market Vectors-Gold Miners ETF (GDX) – up 24.9%
- The Oil Service HOLDRs (OIH) – up 38.6%
- SPDR S&P Oil & Gas Equipment & Services ETF (XES) – up 36.2%
- United States Oil (USO) – up 40.5%
- iPath S&P GSCI Crude Oil Total Return Index ETN (OIL) – up 41.0%
- streetTracks Gold Shares Fund (GLD) – up 24.2%
- iShares Comex Gold Trust (IAU) – up 23.6%
- PowerShares DB Gold (DGL) – up 6.0% for the last three months, having launched in early 2007. It invests in gold futures not the bullion.