Precious Metals ETFs Rally Despite Risk-On Sentiment | ETF Trends

With stock index ETFs making considerable headway on Wednesday, amid optimism over Moderna’s vaccine news, precious metals ETFs rallied strongly as well.

Gold and silver rallied strongly on Wednesday, with silver leading the way, as bullish traders once again speculated that metals were a bargain and swooped in to purchase early price weakness seen in both metals. Today’s gains in the precious metals were especially noteworthy given the risk-on sentiment that drove global stock markets higher. October gold futures advanced 2.05% to $1,962.95 an ounce, while September Comex silver prices exploded 5.3% to close at $27.66 an ounce.

Gold and silver ETFs benefitted from the moves, lifting the SPDR Gold Trust (GLD) over 1%, and the iShares Silver Trust (SLV) 3.27% on Wednesday.

Today’s moves in gold and silver could suggest that metals are seeing stepped-up buying interest due in part to notions of advancing price inflation in the coming months.

Analysts are giving their latest upside for silver, which has been especially bullish over the past few months. Buying on pullbacks could be the best way to get on board, no matter how scary it appears, explains one analyst.

“Ultimately, this market looks as if it is finding enough buying pressure to turn things around and go looking towards the $28 level. That is an area that I think will be a nice target and eventually get broken to the upside, perhaps opening up the idea of the market going all the way to the $30 level,” explained Christopher Lewis of FXEmpire.

“I do like the idea of buying short-term pullbacks to give you an opportunity to take advantage of “cheap silver”, as we are most certainly in a market that is looking at this dip as a potential buying opportunity, as there is plenty of demand for hard assets. Silver has recently shot straight up in the air and now looks as if it is trying to figure out where we are going next as we have digested so much of the gains. That being the case, I like the idea of buying this dip in continuing to add, he added.”

For investors looking to use ETFs to trade precious metals, Aberdeen has quite a collection. Aberdeen’s suite includes the Aberdeen Standard Gold ETF Trust (SGOL), which comes with a 0.17% expense ratio, and the Aberdeen Standard Physical Silver Shares ETF (SIVR),  which has a 0.30% expense ratio. Additionally, the Aberdeen Standard Physical Precious Metals Basket Shares (NYSEArca: GLTR), which has a 0.60% expense ratio, is a cornucopia of metals including gold, silver, platinum, and palladium.

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