The more positive outlook on the dollar led to a selloff of precious metals and their related exchange traded funds (ETFs). Today, the outlook is a little better.

streetTRACKS Gold Shares (GLD) and iShares COMEX Gold Trust (IAU) both finished 3.9% lower yesterday. Market Vectors Gold Miners (GDX) and iShares Silver Trust (SLV) fell 2.8%.

As evidence of the drubbing precious metals took on Tuesday, June gold fell $33.70.

All funds today are trading up near 3% midday, thanks to speculators and bottom-fishers, highlighting the volatility in commodities. The dollar dipped back down, crude oil bounced higher and both incidents reignited demand for gold and silver, reports Allen Sykora for Dow Jones Newswires.


Copper also moved higher on Wednesday, Sykora reports, although experts can’t seem to agree on why. Some say it’s a matter of technical buying or a result of overall precious metal-market strength, others say it’s a result of ideas that the U.S. economy could be in a state of recovery.

Exposure to copper can be had in either the iPath DJ AIG Copper TR Sub-Index ETN (JJC) or PowerShare DB Base Metals (DBB), which holds one-third each of copper, aluminum and zinc.

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.