Gold ETFs & Silver ETFs finished mixed on market rally and economic indicators
Gold ETFs and Silver ETFs had mixed reactions to today’s market surge. Gold ETFs dropped slightly on average while silver ETFs swung up roughly .3%. Today’s stock market surge was likely due to a combination of positive economic indicators released this morning and a slight correction due to earlier declines this week. Also, stock markets and index ETFs seemed to forget about Greece for the time being.
The gold spot price meanwhile declined .07% today to close at $1728.40 per ounce while gold ETFs including the SPDR Gold Trust ETF (NYSEARCA:GLD), the iShares Gold Trust ETF (NYSEARCA:IAU), and the ETFS Gold Trust ETF (NYSEARCA:SGOL), all declined around a tenth of a percent on average. Gold prices and gold ETFs likely dropped slightly in response to today’s market upswing; since gold and gold etfs are seen as a “safe haven” for sometimes precarious or unstable investments such as stocks and currencies, it is no surprise that gold dropped because investors felt safe in other assets today. Although Greece and Europe are hiding under the bed for today and likely tomorrow, they have by all means not disappeared, so gold and gold ETFs could see a surge next week if Greece continues to stoke its fire.
Silver and Silver ETFs reacted differently however to today’s index increases. The silver spot price declined .12% to close at $33.37 per ounce, while silver ETFs including the iShares Silver Trust ETF (NYSEARCA:SLV) and ETFS Silver Trust (NYSEARCA:SIVR), rose .3% on average. The silver spot price likely declined slightly for the same reasons as gold; silver is typically seen as a “safe haven” currency and typically falls when stocks rise. Silver ETFs likely rose however, because of improved economic indicators released this morning, which suggested increased manufacturing and economic activity in the US.
Since silver has a manufacturing purpose in addition to its “safe haven” perception, it is not surprising to see a silver uptick when economic growth or manufacturing growth picks up. Silver ETFs and the silver spot price likely did not match today because of tracking errors.
Gold ETF & Silver ETF Update:
- SPDR Gold Trust ETF (NYSEARCA:GLD): -0.09 (-0.05%)
- iShares Gold Trust ETF (NYSEARCA:IAU): -0.02 (-0.12%)
- ETFS Gold Trust ETF (NYSEARCA:SGOL): -0.13 (-0.08%)
- iShares Silver Trust ETF (NYSEARCA:SLV): +0.12 (0.37%)
- ETFS Silver Trust ETF (NYSEARCA:SIVR): +0.11 (0.33%)
