ETF Trends
ETF Trends

Gold and silver exchange traded funds (ETFs) were down by as much as 5% in trading today as prices for the metals fell and the dollar showed signs of life.

Spot gold fell to $903.50 an ounce, its lowest level in a week, reports Karl Plume for Reuters. Spot silver lost 4%, while platinum lost 1.4%. The euro fell from one-month highs after German and French sentiment numbers were released, while the dollar improved after a surprise jump in home sales was announced. Oil prices also dropped off, falling below $130 a barrel.

A stronger dollar makes gold pricier for holders of other currencies and lowers demand for the metal. It’s also viewed as a hedge against higher oil prices.

Among the metals-focused ETFs taking a hit in trading today are:

  • iShares Silver Trust (SLV): Holds silver bullion; up 22.6% year-to-date
  • PowerShares DB Silver Fund (DBS): Holds silver futures; up 20.8% year-to-date
  • SPDR Gold Shares (GLD): Holds gold bullion; up 10.6% year-to-date
  • PowerShares DB Precious Metals Fund (DBP): Holds gold and silver futures; up 11.7% year-to-date

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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.