Gold, Silver ETFs Lose Some Luster As Dollar Firms Up
May 27th at 2:00pm by Tom Lydon
Gold and silver exchange traded funds (ETFs) were down by as much as 5% in trading today as prices for the metals fell and the dollar showed signs of life.
Spot gold fell to $903.50 an ounce, its lowest level in a week, reports Karl Plume for Reuters. Spot silver lost 4%, while platinum lost 1.4%. The euro fell from one-month highs after German and French sentiment numbers were released, while the dollar improved after a surprise jump in home sales was announced. Oil prices also dropped off, falling below $130 a barrel.
A stronger dollar makes gold pricier for holders of other currencies and lowers demand for the metal. It’s also viewed as a hedge against higher oil prices.
Among the metals-focused ETFs taking a hit in trading today are:
- iShares Silver Trust (SLV): Holds silver bullion; up 22.6% year-to-date
- PowerShares DB Silver Fund (DBS): Holds silver futures; up 20.8% year-to-date
- SPDR Gold Shares (GLD): Holds gold bullion; up 10.6% year-to-date
- PowerShares DB Precious Metals Fund (DBP): Holds gold and silver futures; up 11.7% year-to-date
