Gold and silver exchange traded funds were suffering losses of more than 2% on Thursday, breaking support trend lines from the summer rally in the process.
SPDR Gold Shares (NYSEArca: GLD) was down 2.2% in afternoon trading while iShares Silver Trust (NYSEArca: SLV) dropped 2.9%.
Precious metals were lower after the European Central Bank announced it is cooperating with other central banks to pump more liquidity into troubled financial markets.
Stocks were rising on improved sentiment over the Eurozone debt crisis and the possibility of a Greek default. [Gold and Silver ETFs Lower on Europe, Data]
Technical analysts pointed out that gold and silver ETFs were breaking rising support lines after gold recently formed a potential “double top” pattern. [Gold ETF Technical Analysis: Double Top?]
SPDR Gold Shares
iShares Silver Trust
Full disclosure: Tom Lydon’s clients own GLD and SLV.