Monday, April 18, 2011

SPDR (GLD), iShares Silver Trust (SLV) Jump on S&P Downgrade

After Standard & Poor’s lowered the credit rating outlook on the U.S., shares of SPDR Gold Shares (NYSEArca:GLD) and iShares Silver Trust (NYSEArca:SLV) both rose, with SPDR soaring to a new record, hitting above the $146 a share mark, although pulling slightly back as the trading day has advanced.

John Kilduff, a partner at Again Capital, said, “Only precious metals will be seen as attractive in the aftermath of the outlook downgrade,” John Kilduff, a partner at Again Capital, said to Reuters. “The overall economic outlook becomes more opaque with this; equities and energies will be very much under pressure now.”

Also noteworthy today is the yield of Greek bonds, which soared today, bringing the sovereign debt crisis back into the eye of investors, which is helping push up the price of precious metals in general.

SPDR was trading at $145.83, gaining $0.78, or 0.54 percent, as of 2:51 PM EDT. iShares Silver Trust was trading at $42.18, up $0.34, or 0.81 percent.

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