A rising U.S. dollar following Japan’s latest currency intervention Monday acted as a headwind for gold and silver exchange traded funds.
SPDR Gold Shares (NYSEArca: GLD) and iShares Silver Trust (NYSEArca: SLV) were down 1.4% and 2.8%, respectively, in the first hour of U.S. trading.
“Gold and other precious metals are being knocked this morning by profit-taking and the strong U.S. dollar,” said Commerzbank analysts in a note, according to a MarketWatch report.
The dollar strengthened after Japan stepped in again to force the yen lower and protect exporters. [Yen ETF Falls 3%]
“The huge spike in the dollar is pressuring gold prices,” said Ong Yi Ling, an analyst at Phillip Futures, in a Reuters report. “But so long as gold stays above $1,700, the sentiment should remain pretty bullish.”
iShares Silver Trust
Full disclosure: Tom Lydon’s clients own GLD and SLV.
The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.