Silver exchange traded funds were posting some of the largest percentage declines in ETF trading Tuesday after China reported disappointing economic growth and following Moody’s warning on France’s credit rating.
The iShares Silver Trust (NYSEArca: SLV) was down over 2% but pared its earlier loss, while SPDR Gold Shares (NYSEArca: GLD) slipped about 2% at last check.
China said third-quarter GDP rose 9.1% but economic growth was the slowest in over two years. [China ETFs Fall]
Separately, Moody’s warned it may put a negative outlook on France’s credit rating in the next three months due to bank bail-outs and Eurozone debt concerns, Reuters reported.
Silver, which has more industrial uses, fell harder than gold on Tuesday.
Gold was under pressure again Tuesday “as the slow moves higher in recent weeks met with selling by investors who were reluctant to bet on the yellow metal making a fresh bull run,” Dow Jones Newswires reported.
“Failure to reach the $1,700 a troy ounce mark has evidently prompted speculative investors to close long positions,” analysts with Commerzbank said in a note, according to the report.
iShares Silver Trust
Full disclosure: Tom Lydon’s clients own GLD and SLV.