ETF Trends
ETF Trends

Gold and silver exchange traded funds (ETFs) were set for a lower open Tuesday following the previous session’s rally as traders positioned for options expiration.

The iShares Silver Trust (NYSEArca: SLV) was down 2% in premarket trading Tuesday, while SPDR Gold Shares (NYSEArca: GLD) was slipped fractionally.

Silver on Monday pulled back from a move toward $50 an ounce while the silver ETF saw record trading volume.

“People are watching out for options expiry,” said Yingxi Yu, an analyst at Barclays Capital, according to Reuters. “There are decent-sized open interests at the strike levels of $40, $45 and $50. When there are large positions, it tends to suggest that prices may sway to those levels on options expiry.”

As of April 25, the silver ETF held assets of nearly $17 billion and 366.2 million ounces of bullion, according to manager BlackRock. The ETF has jumped nearly 80% over the past three months.

iShares Silver Trust (NYSEArca: SLV)

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.