Exchange traded funds (ETFs) that invest in gold and silver jumped Monday morning after Standard & Poor’s cut its outlook on U.S. debt to negative, while Treasury ETFs fell in the wake of the downgrade.

The iShares Silver Trust (NYSEArca: SLV) rose more than 1% in early trading while SPDR Gold Shares (NYSEArca: GLD) was up fractionally. Both ETFs notched fresh 52-week highs in early action.

Meanwhile, ETFs that track U.S. Treasury bonds weakened after S&P said it sees a 1-in-3 chance it could lower its long-term rating on the U.S. in the near term.

The iShares Barclays 20+ Year Treasury Bond Fund (NYSEArca: TLT), which follows the long end of the yield curve, fell about 1%.

In U.S. stocks, SPDR S&P 500 ETF (NYSEArca: SPY) dropped more than 1% in recent trading.

However, the dollar strengthened against a basket of foreign currencies as PowerShares DB US Dollar Bullish Fund (NYSEArca: UUP) traded higher after the S&P bombshell.

iShares Barclays 20+ Year Treasury Bond Fund

Full disclosure: Tom Lydon’s clients own SLV and GLD.

The opinions and forecasts expressed herein are solely those of John Spence, 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.