Gold and silver exchange traded funds were set for additional losses Monday as investors sold precious metals to cover losses elsewhere in their portfolios amid the volatility in global stocks.
SPDR Gold Shares (NYSEArca: GLD) was down 0.5% in premarket trading while iShares Silver Trust (NYSEArca: SLV) slipped 5.7%.
Gold and silver ETFs fell sharply last week on deflation worries. The gold ETF is down 10% over the past month and the silver fund has dropped about 26%.
“Margin increases on gold and silver on Comex and the Shanghai Gold Exchange at the end of last week exacerbated the sell-off, forcing widespread liquidation of positions,” a trader told FastMarkets.
Gold prices briefly dipped below $1,600 an ounce on Monday morning.