Exchange traded funds tracking gold, silver and miner stocks were among the steepest decliners Tuesday as global markets sold off on concerns the latest troubles in Greece will shatter the Eurozone.
In precious metals, SPDR Gold Shares (NYSEArca: GLD) fell 2.5% while iShares Silver Trust (NYSEArca: SLV) slipped 2.9%.
ETFs that invest in miner shares suffered even worse losses. Market Vectors Gold Miners (NYSEArca: GDX) dropped 4.2% and Global X Silver Miners (NYSEArca: SIL) declined 4.8%. Both ETFs set fresh 52-week lows on Tuesday.
Meanwhile, gold prices fell to a four-month low.
The future of Greece’s political leadership is in doubt following the weekend elections, raising fears the financially strapped country will exit the euro. On Tuesday, the ASE Index, a benchmark of Greek stocks, sank to its lowest level since 1992. Greece’s market is down about 90% from the peak in 2007. [Greece ETF Hits New Low on Euro Worries]
Europe’s debt crisis has heated up in recent weeks but investors appear to be favoring the U.S. dollar as a safe haven rather than gold. Currency ETFs such as PowerShares DB US Dollar Index Bullish (NYSEArca: UUP) have benefited from this recent trend.