Silver exchange traded funds jumped about 3% on Thursday to reverse some of their recent losses as value hunters bought precious metals following their recent downdraft.
ETFS Physical Silver Shares (NYSEArca: SIVR) and iShares Silver Trust (NYSEArca: SLV) both rallied 3%.
Gold ETFs enjoyed a late-day rally but ended the session fractionally negative.
Gold prices have dropped below $1,600 an ounce as investors raise cash on Eurozone debt jitters. Also weighing on prices is news that Indian imports of gold dropped 75% compared to last year. A stronger U.S. dollar has also contributed to the drop in the $64.2 billion SPDR Gold Shares ETF (NYSEArca: GLD). [Can Gold ETFs Push to a New Record High in 2012?]
“The selling is the perfect storm of negative lease rates, undesirable technical analysis signs, weakness in the jewelry trade in the U.S. and India, and a stronger dollar,” George Gero, vice president of global futures at RBC Captial Markets, said. “Until after New Year we may not see much in the way of a rally as it is expensive in terms of high margin deposits,” Gero said on MarketWatch. [Gold, Silver ETFs Drop as Investors Shun Risk]
Gold prices have dropped 8.1% this month between December 1 through December 23 as the European debt crisis remains a threat and the U.S. dollar has gained strength, reports Kaitlyn Kieman for The Street.