Gold and silver exchange traded funds moved to the downside on Wednesday along with U.S. stocks as precious metals ETFs continue to endure volatile swings.
Gold ETFs were losing ground after snapping a multiday losing streak on Tuesday. [Metals Surge Ends Losing Streak]
“After the rally, you are seeing some profit-taking,” said Stephen Platt, an analyst with Archer Financial Services, in a MarketWatch report. “People are shedding some risk after the volatility they’ve seen.”
SPDR Gold Shares (NYSEArca: GLD) was down 3% in afternoon trading Wednesday, while iShares Silver Trust (NYSEArca: SLV) declined 7%. Heading into the session, the gold ETF was up 15.8% year to date, while the silver fund gained 3.3%, according to investment researcher Morningstar.
The inverse correlation between gold and the U.S.dollar has been reasserting itself in recent days, Dow Jones Newswires reported Wednesday.
SPDR Gold Shares
Full disclosure: Tom Lydon’s clients own GLD and SLV.
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