Silver exchange traded funds were outperforming gold in Tuesday’s precious metals rally as investors awaited news from the European summit and after a report showing consumer confidence posted an unexpected decline in October.
ETFs tracking silver prices such as iShares Silver Trust (NYSEArca: SLV, ETFS Physical Silver Shares (NYSEArca: SIVR) and Powershares DB Silver Fund (NYSEArca: DBS) rose about 5% on Tuesday.
SPDR Gold Shares (NYSEArca: GLD) added 3% in afternoon trading. [Gold ETFs Rally]
There was safe-haven buying Tuesday on speculation European Union leaders will announce a plan Wednesday that’s short on details and specific steps for dealing with the debt crisis and Greece, Kitco News reported.
Silver prices hit a fresh four-week high. The silver bulls now have the overall near-term technical advantage, Kitco said.
The iShares Silver Trust was down 21% year to date as of Oct. 14, according to investment researcher Morningstar. Silver was hit hard during the September correction.
The metal was rising sharply Tuesday on lingering talk the Federal Reserve may engage in more economic stimulus, which would be bearish for the U.S. dollar.