Precious metals and exchange traded funds (ETFs) have been all over the map lately; demand is up for some, down for others and prices are struggling to find their way amid the market volatility. One thing is for certain: they’re attracting attention.
Gold has been defying the fundamentals, ignoring its usual correlation with down markets. SPDR Gold Shares (GLD) is down 16.9% in the last month, while the S&P 500 is down 15.9%. Gold is generally seen as a safe haven, so investors run for cover with the metal in down markets. But a strengthening dollar has turned the tables on that thinking for the time being, as gold typically moves opposite the greenback.
Gold is continuing to decline today, as the dollar shows new vigor and oil prices slump, reports Moming Zhou for MarketWatch.
Copper prices are falling on lower demand. The metal is often used for electrical wiring and pipe, but the global decline in homebuilding has put a dent in the need for it for the time being, according to MarketWatch. Copper sales at one company, Newmonth (NEM), fell 84% in the third quarter.
Chile, the world’s largest copper producer, saw 10.3% less output in September from a year earlier. It’s the third consecutive month year-over-year that production declined, reports Reuters.