Gold and silver exchange traded funds (ETFs) were poised to open higher Wednesday in U.S. trading as the dollar continued to weaken and gold rose above $1,500 an ounce.
SPDR Gold Shares (NYSEArca: GLD) and iShares Silver Trust (NYSEArca: SLV) were up fractionally in premarket action Wednesday. Meanwhile, PowerShares DB US Dollar Bullish Fund (NYSEArca: UUP) was set to open lower as the greenback fell against its currency rivals.
“The dollar has lost ground to its major counterparts,” James Moore, an analyst at TheBullionDesk.com in London, said in a report to clients, according to Bloomberg. “The mix of inflation, currency debasement, euro zone debt and Middle East and North African unrest continues to fuel investment demand [for gold].”
Silver prices climbed to a fresh 31-year high as the metal has outperformed gold handily this year.
“Silver is still going nuts. It continues to outperform gold, which I find a little but worrisome, but we haven’t seemed to find a top yet so it continues to be well bid and supported,” a Country Hedging analyst told FastMarkets.
Still, some analysts think money moving into liquid ETFs for silver raise the odds of a quick and severe correction in prices.
iShares Silver Trust
Full disclosure: Tom Lydon’s clients own GLD and SLV.
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.