Gold and silver exchange traded funds rebounded Tuesday to snap their losing streak as a weaker dollar and bargain hunters pushed the precious metals higher.
SPDR Gold Shares (NYSEArca: GLD) was up 3% in premarket, while iShares Silver Trust (NYSEArca: SLV) added 9%.
The metals ETFs bounced Tuesday after seeing a big drop recently on profit taking and as investors sold winners to raise cash to cover losses elsewhere in their portfolios.
“Gold prices were hit by a sharply appreciating U.S. dollar and the announcement of a further 21% increase in gold futures margin requirements by the CME on Friday,” ETF Securities said in a report.
The gold ETF is down 9% over the past five days while the silver fund has dropped 23%.
The gold-to-silver ratio has risen to 54, the highest in nearly a year, according to ETF Securities, which manages ETFS Physical Swiss Gold Shares (NYSEArca: SGOL) and ETFs Physical Silver Shares (NYSEArca: SIVR).