Gold and silver exchange traded funds fell sharply Tuesday as a rebound in global risk appetite helped push the Dow Jones Industrial Average to a 322-point gain.
SPDR Gold Shares (NYSEArca: GLD) declined 3.8% while iShares Silver Trust (NYSEArca: SLV) dropped 4.7%. [Silver ETFs Size Up Another Run at $50]
ETFs that invest in gold and silver miner stocks also lost ground Tuesday along with precious metals prices. [Gold Miners ETF Turned Back at 52-Week High]
Gold and silver ETFs slipped following reports that Swiss investment bank UBS boosted its price targets on the metals. UBS now sees gold prices hitting $2,100 an ounce in three months, while its price target on silver is $50 an ounce, according to a report from MarketWatch. However, UBS added “some volatile price moves–both to the upside and the downside–lie ahead.” [ETF Spotlight: SPDR Gold Shares (GLD) Becomes the Largest ETF]
Gold prices have been pushed back after a brief foray above $1,900 an ounce to fresh record highs. [Risk Off: Gold, Silver and Treasury ETFs Outperform]
Some analysts have been warning of a gold correction following the recent price spike. There are also fears of additional margin hikes from exchanges to trade gold futures. [ETFs that Short Gold See Higher Trading Volume]