Despite a recent oversold bounce, stock exchange traded funds continue to trail ETFs that invest in agriculture and precious metals this year.
“Powershares DB Precious Metals Fund (NYSEArca: DBP) still holds its primary uptrend despite last week’s sharp correction,” said Tarquin Coe, technical analyst at Investors Intelligence.
“The chart found support just above the late April high and has since rallied. Today is seeing a slight but healthy pullback following two strong up days,” he wrote in a newsletter Monday. “Conditions are not overbought with momentum close to neutral. The relative chart against the S&P 500 maintains a series of higher highs and higher lows, so that trend remains up.”
However, the precious metals ETF followed gold prices lower Monday with a nearly 2% decline. Gold traded below $1,800 an ounce.
“It’s primarily the risk trade back on, and that hurts gold a little bit,” said Matt Zeman, head trader and analyst at Kingsview Financial, in a MarketWatch report.