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.