SPDR Gold Shares (NYSE: GLD), the largest exchange traded fund (ETF) for gold, rose to a new record high above $146 a share Monday while prices for the precious metal approached $1,500 an ounce after Standard & Poor’s lowered its credit outlook on the U.S.
The gold ETF rose nearly 1% in afternoon trading Monday, while iShares Silver Trust (NYSEArca: SLV) was also up fractionally.
“Only precious metals will be seen as attractive in the aftermath of the outlook downgrade,” John Kilduff, a partner at Again Capital, told Reuters. “The overall economic outlook becomes more opaque with this; equities and energies will be very much under pressure now.”
Surging Greek bond yields put Europe’s debt problems back in the spotlight Monday and also boosted precious metals.
SPDR Gold Shares
Full disclosure: Tom Lydon’s clients own SLV and GLD.
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