While the dollar strengthened yesterday and the price of oil pulled back slightly, the price of gold and its exchange traded funds (ETFs) took the hit.
June gold fell to $909 an ounce, and at one point during the day slipped slightly below the $900 mark, reports Candace Cumberbatch for The Australian.
One analyst says investors are sensing several pivot points taking shape in currencies and the credit crisis, which is causing them to ease up on their metals positions, reports Polya Lesova for Market Watch.
While platinum is predicted to hit a new high of $2,400 this year because of continuing power supply problems in South Africa, silver futures fell to $16.79 an ounce.
ETFs that track the futures for those metals fell in trading yesterday, and continue to slide south midday today:
- iShares COMEX Gold Trust (IAU), down 1.2% yesterday; up 8.2% year-to-date
- streetTRACKS Gold Shares (GLD), down 1.2% yesterday; up 8.3% year-to-date
- iShares Silver Trust (SLV), down 2.7% yesterday; up 15.9% year-to-date
For full disclosure, some of Tom Lydon’s clients own shares of GLD.
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.