Exchange traded funds that invest in gold and silver followed equities lower on Monday as markets turned their attention to Europe’s debt crisis following credit downgrades of Greece and Italy.
The iShares Silver Trust (NYSEArca: SLV) fell 1.4% while SPDR Gold Shares (NYSEArca: GLD) slipped 0.5% in premarket action.
Dow futures were down 100 points before the opening bell. Fitch downgraded Greece’s credit rating Friday while Standard & Poor’s cut its view on Italy. [Stock, Euro ETFs Start Week in Red]
PowerShares DB US Dollar Bullish (NYSEArca: UUP) was up about 1% Monday as the greenback strengthened.
Europe’s debt woes “continue to drive a sell-off in commodities in general, including gold and oil, and prompt investors to buy dollars,” said analyst John Meyer of Fairfax, according to FastMarkets.
“Prices will likely trade in line with risk expectations this week as European debt concerns look set to be the main focus,” the analyst said, according to the report.
iShares Silver Trust
Full disclosure: Tom Lydon’s clients own SLV and GLD.