Gold, Euro and the Yen: ETFs for Changing Sentiment | ETF Trends

Can you feel the changing tides? Gold prices are back to seven-week lows, the U.S. dollar has fallen off its perch and euro exchange traded funds (ETFs) are back in favor. Now that the sentiment has turned, there are a slew of ETFs to play it.

Traders are fleeing the gold market. Matt Day for The Wall Street Journal report that gold for August delivery dropped below $1,200 an ounce for the first time since Tuesday while intraday prices are at their lowest price since May. Blame mixed signals from the currency markets – the euro is rising again. Is it time to short gold? Maybe – if you believe that gold has further to fall and you know that leveraged ETFs are right for you:

  • PowerShares Double Gold Short ETN (NYSEArca: DZZ)
  • PowerShares DB Gold Short ETN (NYSEArca: DGZ)
  • ProShares UltraShort Gold (NYSEArca: GLL)

Meanwhile, the dollar had been at its lowest level since December against the yen earlier in the day as economic data continued to lead investors to question the pace of the U.S. recovery, namely consumer spending. The two currencies rallied later, however, on safe-haven buying, reports Benzinga.

The euro has surged 9.2% since hitting a four-year low against the dollar last month, says MarketWatch. If you’re putting stock in that rally, we’ve found a slew of currency ETFs and exchange traded notes (ETNs) in our Analyzer that will give you the opportunity to capitalize on it:

  • CurrencyShares Euro Trust (NYSEArca: FXE)
  • PowerShares US Dollar Bearish (NYSEArca:UDN)
  • ProShares Ultra Euro (NYSEArca: ULE)
  • Wisdomtree Dreyfus Euro ETF (NYSEArca: EU)
  • Market Vectors Double Long Euro ETN (NYSEArca: URR)
  • Wisdomtree Dreyfus Japan  Yen ETF (NYSEArca:JYF)
  • CurrencyShares Japanese Yen Trust (NYSEArca: FXY)
  • ProShares Ultra Yen ETF (NYSEArca: YCL)

For more stories about currency ETFs, visit our currency ETF category.

Read the disclaimer; Tom Lydon is a board member of Rydex|SGI.

Tisha Guerrero contributed to this article.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. 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.