Gold exchange traded funds rose 2% in early dealings Thursday after the European Central Bank stood pat on interest rates and ECB President Jean-Claude Trichet said inflation risks in the region are balanced but economic risks are to the downside amid the credit crisis.
Trichet said the Eurozone economy will “grow moderately subject to particularly high uncertainty and intensified downside risks,” FastMarkets reported.
ETFs pegged to the euro slipped Thursday after the ECB held interest rates steady at 1.5%. [Euro ETFs Fall]
SPDR Gold Shares (NYSEArca: GLD) was up 2% at last check. The precious metals ETF sported a 27.7% year-to-date gain heading into Thursday’s trading, according to investment researcher Morningstar.
The gold ETF has pulled back a bit after setting a new all-time high earlier this month. Other ETFs tracking gold prices include ETFS Physical Swiss Gold Shares (NYSEArca: SGOL) and iShares Gold Trust (NYSEArca: IAU). [Gold ETF Technical Analysis: Double Top?]
Metals traders are awaiting two key speeches later Thursday from President Barack Obama and Federal Reserve Chairman Ben Bernanke. [Stock ETFs Rally Before Obama Speech on Stimulus Hopes]
“Concerns over the U.S. slipping into recession and Eurozone debt woes are likely to come back into focus after tonight’s [Obama] speech, which should prompt a return to safe-haven buying,” Standard Bank said in a note, FastMarkets reported.
SPDR Gold Shares
Full disclosure: Tom Lydon’s clients own GLD.