Gold ETFs, Silver ETFs Start Week With Gains

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Gold ETFs and silver ETFs climbed on Monday in response to looming budget battle and technical rebound.

goldbar 300x211 Gold ETFs, Silver ETFs Start Week With GainsGod ETFs (NYSEARCA:GLD) and silver ETFs (NYSEARCA:SLV) continued their rebound from recent lows as the White House and Congress geared up for the upcoming budget battle and Dr Bernanke said that he didn’t think inflation would be a problem.

Gold and gold ETFs (NYSEARCA:IAU) are oftentimes viewed as a hedge against inflation and also as a form of security should paper currencies be devalued.  Gold and gold ETFs have been in a 12 year bull market and the recent correction is being viewed as a buying opportunity by those with a long term bullish bias towards the precious metal.  Others say that the commodity super cycle is over and that the bull market in gold is over and a new bear has taken hold.

Gold and gold ETFs (NYSEARCA:GLD) have been moving inversely to the US dollar in recent years, and as the dollar has weakened, gold and gold ETFs have enjoyed a long bull run.  Now, if real progress should be made in corralling the U.S budget deficit, gold bears argue that the result of that will be a strong dollar and weaker gold and gold ETF prices.

Others argue that if an agreement is reached on the deficit that this would have a bullish effect on gold and gold ETFs (NYSEARCA:GLD) as risk assets would be supported by this development. Read “Can Gold Push Through: Weekly Precious Metals Report”

Silver and silver ETFs (NYSEARCA:SLV) also gained today on hopes that the recent bottom marks the new low and will serve as the beginning of a new upturn for the precious metal.

Copper ETFs (NYSEARCA:JJC) didn’t participate in today’s broader rally in precious metals.

Gold ETF and Precious Metal ETF  Update:

Gold settled today at $1666/oz, up a fraction while silver c;osed at $31.02/oz., up 1.74%.

SPDR Gold Trust ETF (NYSEARCA:GLD): +0.3%, This ETF reflects the current price and trends of Gold Bullion and so offers exposure to the gold market within a brokerage account.

iShares Gold Trust ETF (NYSEARCA:IAU): +0.31%, This ETF reflects the current price and trends of Gold Bullion and so offers exposure to the gold market within a brokerage account.

iShares Silver Trust ETF (NYSEARCA:SLV): +1.90%, This ETF reflects the current price of silver and trends of Silver Bullion and so offers exposure to the silver market within a brokerage account.

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