The U.S. equities have been meandering along for the past few weeks but were pulled from their stupor after Chinese yuan selling triggered a risk-off sentiment. Nevertheless, there are still pockets of strength in some markets and exchange traded funds.
For instance, the best performing ETFs on Wednesday were those that tracked precious metal miners. The Market Vectors Gold Miners ETF (NYSEArca: GDX) increased 4.6%, Market Vectors Junior Gold Miners ETF (NYSEArca: GDXJ) surged 5.6% and Sprott Junior Gold Miners ETF (NYSEArca: SGDJ) jumped 5.4%. [Oversold Gold Miner ETFs May Have Opportunity to Rebound]
Meanwhile, the Global X Silvers Miners ETF (NYSEArca: SIL) rose 5.4%, PureFunds ISE Junior Silver Small Cap Miners/Explorers ETF (NYSEArca: SILJ) advanced 5.2% and iShares MSCI Global Silver Miners ETF (NYSEArca: SLVP) gained 5.3% on Wednesday.
The precious metals miners were strengthening as bullion trades rose – the SPDR Gold Shares (NYSEArca: GLD) added 1.4% and iShares Silver Trust (NYSEArca: SLV) was up 1.2%.
The precious metals were higher on a weakening U.S. dollar and on increased safe-haven demand after China cut its yuan rate against the U.S. dollar for the second day, rising on a five-day rally.
“Gold has benefited the most from the situation in China because the metal looks set continue building on the strongest rally seen in months,” FXTM market analyst Jameel Ahmad said in a note, according to MarketWatch.