March 24, 2008 at 1:00 pm by Tom Lydon
Commodity
prices corrected after a lengthy rally driven by the Federal Reserve interest rate
cuts, sending exchange traded notes (ETNs) that short gold up 7% in two
days. DB Gold Double Short ETN (DZZ) gained 7% as of last Tuesday and Wednesday, as the shift in precious metals, oil and wheat occurred.
John Spence for MarketWatch reports
that gold prices fell after the Federal Reserve cut interest rates
again on Tuesday, by three-quarters of a percent to their lowest level since
2004.
What’s in store for this week? We’re in volatile times, and anything goes. Gold exchange traded funds (ETFs), such as streetTRACKS Gold Shares (GLD) and iShares COMEX Gold Trust (IAU), are up slightly so far today.
Tags: Commodity ETFs, ETNs, Federal Reserve, GLD, IAU, Metals & Mining, Wheat
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