Commodities-related exchange traded funds (ETFs) and the markets in general are lower so far today as both gold and crude-oil futures consolidated after their recent strong gains. Crude oil for December delivery traded down, amid fading concerns about production disruption in Mexico. Oil prices breached the $93-a-barrel level for the first time Monday, reports Wanfeng Zhou for Thomson Financial.

The markets are down also as investors await the interest-rate decision from the Federal Reserve that comes tomorrow. Traders are pricing in a 92% chance that the Fed will cut its  rates to 4.5% from 4.75%. Some of the gold and oil-related ETFs that are affected and their performance year-to-date include:

  • The Market Vectors-Gold Miners ETF (GDX) – up 24.9%
  • The Oil Service HOLDRs (OIH) – up 38.6%
  • SPDR S&P Oil & Gas Equipment & Services ETF (XES) – up 36.2%
  • United States Oil (USO– up 40.5%
  • iPath S&P GSCI Crude Oil Total Return Index ETN (OIL) – up 41.0%
  • streetTracks Gold Shares Fund (GLD) – up 24.2%
  • iShares Comex Gold Trust (IAU) – up 23.6%
  • PowerShares DB Gold (DGL) – up 6.0% for the last three months, having launched in early 2007. It invests in gold futures not the bullion.

The opinions and forecasts expressed herein are solely those of Tom Lydon, 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.