Gold ETFs (UGL) (GLD) (GDX) (GDXJ) (GTU) Crushed as Gold Prices Fall

Gold ETFs ProShares Ultra Gold (NYSE:UGL), SPDR Gold Trust (NYSE:GLD), Market Vectors Gold Miners ETF (NYSE:GDX), Market Vectors Junior Gold Miner (NYSE:GDXJ) and Central Gold Trust (AMEX:GTU) got hit hard Thursday as gold and silver prices continued their fall.

One exception was ProShares UltraShort Gold (NYSE:GLL), which ended the trading session up again, closing at $25.29, gaining $1.41, or 5.90 percent. A number of commodity ETF shorts have been soaring during the commodity correction

Gold for May delivery, the front-month contract, ended the trading session Thursday down $34, or 2.2 percent, at $1,480.90 per troy ounce on the Comex division of the New York Mercantile Exchange.

The silver contract for May delivery closed 8 percent lower, down $3.152, at $36.231 per troy ounce.

Since the Friday settlement price silver has plummeted 25 percent.

The U.S. dollar was also up, adding pressure to the two precious metals, as it gained 2 percent against the euro. That came largely from European Central Bank President Jean-Claude Trichet who suggested there will no interest-rate boost in the near future.

Nothing has changed the underlying fundamentals for gold or silver though, and this is just a healthy correction before gold and silver prices begin moving up again.

As long as easy money policies continue by the Federal Reserve and interest rates remain near zero, there is nothing to stop gold and silver prices from continuing to rise.

Inflation, political unrest, sovereign debt crisis and the collapsing U.S. dollar will also play a major role over time for gold and silver prices.

Market Vectors Junior Gold Miner closed Thursday at $35.79, falling $2.15, or 5.67 percent.