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.”