July 02, 2008 at 11:00 am by Tom Lydon
As tension mounts over Iran’s nuclear program, about the only thing looking shiny are precious metals, and their related exchange traded funds (ETFs).
Gold rose to its highest level in almost 10 weeks yesterday over speculation about Iran’s nuclear program, while silver has also gained, as investors sought shelter from market trauma. But after a 10% gain in the last week, gold dropped back slightly today, reports Thomson Financial.
After ABC News reported that Israel is likely to attack Iran, crude oil futures nearly doubled, jumping 2.4%, reports Pham-Duy Nguyen for Bloomberg. Oil rose to $142.49 today.
Gold has rallied 45% over the past year, while UBS AG has forecasted a higher average price for the metal.
Israel is threatening to bomb Iran if the Persian Gulf nation acquires enough uranium to build a weapon, threatening Middle East supplies. ETFs that could gain from the run-up in gold and silver are:
- iShares Silver Trust (SLV), up 21.8% year-to-date
- PowerShares DB Gold Fund (DGL), up 10.7% year-to-date
- PowerShares DB Silver Fund (DBS), up 20.2% year-to-date
- PowerShares DB Precious Metals Fund (DBP), up 12.6% year-to-date
- iShares COMEX Gold Trust (IAU), up 12.2% year-to-date
