Heavy Selling in Precious Metal ETFs
11/10/2010 10:16 am EST
As the dollar rallied on Tuesday, many of the markets, including bonds, grains, stocks, and most noticeably, the metals, all reversed to close lower. After-hours selling in silver futures was especially heavy as the CME raised margin requirements. The iShares Silver Trust ETF (SLV) hit a high of $28.72 before closing at $26.18 on massive volume as there was a rush to the exits. SLV has first good support in the $22.50-$24.00 area. The SPDR Gold Trust ETF (GLD) also closed lower as gold futures moved well above $1400 per ounce before reversing. There is support for GLD at $133-$134 and then below $130.
Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.