As the gold price today continues to lose its luster, one of the most popular exchange-traded funds that allow investors to invest simply in the precious metal has now accomplished this dubious feat: giving back all its year-to-date gains.
The SPDR Gold Shares ETF finished only 0.3% lower on Tuesday. Of course, that's not much when you compare that with a slide in major stock market indexes. The Nasdaq composite dropped nearly 1.9%.
But the gold ETF posted its eighth decline in nine sessions. Plus, amid this stretch of losses, volume cruised well above GLD's average turnover over the past 50 sessions as many as seven times, including on Tuesday.
At 169.16, GLD has now lost all of its year-to-date advance of 12.8% and gone negative, down less than 0.3% since Jan. 1.
This negative action clearly indicates anxious selling among both individual and institutional investors.
This story, published on Investors.com last week, details the reasons behind the weakness in gold in recent months. Meanwhile, other precious metals have weakened as well.
Gold Futures Keep Falling, May Go Negative Due To These Major Factors
Silver Falls Too
It's not just the gold price that's been dropping sharply. Front-month silver futures for October delivery on the Comex exchange also slid, edging down 0.2% to $21.18 per ounce, according to Dow Jones Data.
And silver has dropped nearly 6% over a three-session decline, hitting a new six-month low. Its year-to-date loss has expanded to 11.3%.
Market observers often comment that silver, in addition to its role as a safe-haven asset, also serves as a barometer of economic activity. That's particularly true in the electric vehicle and electrical industries.
Meanwhile, copper near-term futures sank nearly 0.5% to $3.62 per pound.
Strong Dollar Keeps Whacking Gold Price
Since the gold price is mainly traded in U.S. currency, the dollar's strength continues to present a headwind toward the defensive asset. Further, yields on both short- and long-term U.S. Treasury bonds offer more competition lately.
The euro on Tuesday remained pinned below $1.05. The benchmark U.S. Treasury 10-year bond yield raced 11 basis points higher to 4.79%, according to Cboe data.
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