ETF Trends
ETF Trends

Gold futures exchange traded funds (ETFs) closed at their highest level in nearly 28 years on Friday, as gains in the metal were fueled by record-high crude prices as well as the tumbling of the dollar to a new all-time low against the euro. Gold for December delivery rallied $16.50, or 2%, at $787.50 an ounce, reports Polya Lesova for MarketWatch. Gold ETFs that benefited from the increase and their performance year-to-date include:

  • streetTracks Gold Shares Fund (GLD) – up 20.9%
  • iShares Comex Gold Trust (IAU) – up 20.4%
  • PowerShares DB Gold (DGL) – up 12.9% for the last three months, having launched in early 2007. It invests in gold futures not the bullion.

Gold futures weren’t the only winners; oil futures ETFs were too. Crude-oil futures rallied to a new record high on Friday, with worries about U.S. inventories and Mideast tensions combining to send the benchmark energy contract past $92 a barrel. Crude for December delivery rose as high as $92.22 a barrel in electronic trading, a day after the U.S. put new economic sanctions on Iran. Futures-based oil ETFs that benefited from the price increase and their year-to-date performance include:

  • United States Oil (USO– up 35.9%
  • iPath S&P GSCI Crude Oil Total Return Index ETN (OIL) – up 36.1%

It should come as no surprise that as both gold and oil hit new highs, the dollar continues to hover around all-time lows. That’s because commodities tend to benefit from a weak dollar. On Friday, the dollar was lower against most major currencies except the yen.

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.