Metals-related exchange traded funds have enjoyed a rally this year, but traders and the miners themselves are growing more pessimistic over the future outlook.
Over the past month, SPDR Gold Shares (NYSEArca: GLD) fell 1.8%, iShares Silver Trust ETF (NYSEArca: SLV) declined 4.7%, VanEck Vectors Gold Miners ETF (NYSEArca: GDX) dipped 0.2% and iShares MSCI Global Silver Miners Fund ETF (NYSEArca: SLVP) slipped 1.2%.
Mining executives warned that the weakness in the metals space could continue on uncertainty over Chinese growth, oversupply in many metals and resources and stronger U.S. dollar, reports Alex MacDonald for the Wall Street Journal.
“Although we have recently seen some positive signals…we are expecting another year or two of low copper prices,” Jean-Paul Luksic, chairman of Chilean copper producer Antofagasta PLC, said.
The iPath Dow Jones-UBS Copper Subindex Total Return ETN (NYSEArca: JJC) declined 7.2% over the past month.