Precious Metals ETFs Rise on Debt Woes; Gold Tops $1,600

July 18th at 7:58am by John Spence

Gold exchange traded funds rose Monday morning as the precious metal’s price rose above $1,600 an ounce for the first time on worries over the sovereign bond crisis in Europe and a lack of clarity on the U.S. debt limit.

Silver ETFs were the big gainers in Monday’s premarket despite gold prices hitting a key milestone – iShares Silver Trust (NYSEArca: SLV) rose nearly 3% before the bell. SPDR Gold Shares (NYSEArca: GLD) added 0.5%.

“European sovereign fears, combined with wrangling over raising the debt ceiling, have boosted safe havens,“ said Forex.com analyst Kathleen Brooks, according to a MarketWatch report. “Recently gold has outpaced silver; however, with gold reaching a record $1,600 per ounce this morning, we think that silver may play catch up.”

The gold ETF is up 12% so far this year.

U.S. stocks were set for a lower open to the week as the debt crisis continued to shake European markets and yields on Italian and Spanish bonds rose. SPDR S&P 500 ETF (NYSEArca: SPY) fell 0.6% in preopen trade.

SPDR Gold Shares


iShares Silver Trust


Full disclosure: Tom Lydon’s clients own GLD and SLV.

The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

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