Investors continue to dump gold and silver exchange traded funds, with gold prices falling below $1,700 an ounce and silver prices plunging more than 10%.
iShares Gold Trust (NYSEArca: IAU) was down 6.31% at last check – the fund fell below its 50-day EMA, and the ETFS Physical Silver Shares (NYSEArca: SIVR) was down 14.81% – the fund is falling close to its 200-day EMA.
Silver prices plunged to the low $30 range, losing more than 12%, while gold prices fell 4% to around $1,660 an ounce.
Growing fears about the Eurozone’s debt problem and their unstable financial system has weighed on the markets, reports Tatyana Shumsky for The Wall Street Journal.
Meanwhile, gold has been dumped as traders sold precious metals positions for cash in anticipation for covering losses in other markets.
“We remain concerned that liquidity fears are going to keep any upside for precious metals capped,” Marc Ground, a precious-metals analyst with Standard Bank, commented.
“Gold has been caught up in the overall flight to the exit, but in a normal, sensible world, we should expect to see some support from the fear and trepidation investors are facing,” Nick Trevethan, senior commodities strategist at Australia & New Zealand Banking Group Ltd., said, reports Glenys Sim for Bloomberg.
iShares Gold Trust
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Max Chen contributed to this article.