Gold and silver are sliding Tuesday, pausing after both hit six-week closing highs to open the week and physical demand from Asia remained light as Chinese markets celebrated the Lunar New Year holidays.
The SPDR Gold ETF (GLD) is pointing down 0.9% in pre-markets. February gold on the Comex is trading lower by $14.50 at $1,663.80 an ounce. Meanwhile, the iShares Silver ETF (SLV) is sliding 0.8% ahead of the opening bell while March silver in New York is off by 26 cents at $32.01 an ounce. ETFs focused on mining stocks are also looking to open lower: both the Market Vectors GoldMiners ETF (GDX) and its small-cap focused cousin Junior Gold Miners ETF (GDXJ) are dropping by more than 1%.
Precious metals are being pressured today by a rising dollar as negotiations between Greece and its private creditors stall. The PowerShares U.S. Dollar ETF (UUP) is rising 0.5% ahead of the opening bell. The CurrencyShares Euro ETF (FXE), on the other hand, is sliding 0.6%.
Yesterday, front-month gold futures rose $14.30 in New York for its highest finish since Dec. 9, lifted by inflationary expectations as crude-oil prices rose on tensions related to the European Union’s oil embargo on Iran.