ETF Trends
ETF Trends

Exchange traded funds that follow gold and silver prices continued their drive higher Thursday as the Eurozone debt crisis continued to dominate the news flow.

SPDR Gold Trust (NYSEArca: GLD) climbed 1.3% in early U.S. trading while iShares Silver Trust (NYSEArca: SLV) added 1.2%.

U.S. stock ETFs fell sharply in the global “risk-off” trade – the Dow slipped nearly 200 points. [Stock ETFs Pull Back]

“Despite a last minute compromise deal to head off a potential U.S. debt default, the gold price surged as weak U.S. GDP figures and a fall in the July manufacturing ISM increased speculation of a possible third round of quantitative easing later this year and firmed perceptions that low real interest rates will remain in place for the foreseeable future,” ETF Securities analysts wrote in a recent precious metals report.

“In addition Standard & Poor’s rating agency has indicated a U.S. debt downgrade is still possible and last week warned of a potential Spanish debt downgrade, indicating sovereign risk issues will remain key risks and interest in stores of value will remain strong on a medium-term basis,” they added.

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