Markets

Gold ETF Falls Again As Stocks Continue To Rise And Dollar Surges

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Most major stock ETFs eased slightly on Friday but rose on the week as Fed officials signaled that a rate hike may be on the way in December. The largest gold-backed fund fell for a second week as the U.S. dollar surged.

SPDR S&P 500 ( SPY ) eased 0.2% on the stock market today but posted a 1.0% weekly gain.

This exchange traded fund, a proxy for the broad U.S. market, sits fractionally under its August high of 219.60 following the postelection stock market rally.

SPDR Gold Shares ( GLD ), a commodity ETF , notched a 1.7% weekly loss and has now fallen 12% under its July high.

The ETF, a top performer in 2016 , is testing support at the 115 level for the third time since April.

[ibdchart symbol="gld" type="weekly" size="half" position="leftchart" ]

Demand for safe-haven gold has fallen sharply following the Nov. 8 election outcome, as Donald Trump's win sharpened investors' risk appetite.

Additionally, the dollar is trading at a one-year high against a basket of major world currencies, amid higher odds of an increase in interest rates in December.

Gold and the greenback tend to move in opposite directions.

Energy was the week's best-performing sector, up 2.4%; health care trailed, down 1.1%.

United States Oil ( USO ), a commodity ETF tracking West Texas Intermediate crude futures, rallied 5.6% on the week to snap a string of three weekly losses.

On Friday, U.S. crude futures reversed higher to settle up 0.6% at $45.69 per barrel.

OPEC members indicated willingness to grant Iran some leeway in a deal to cut oil production and stabilize prices, reports said. Crude prices came under pressure intraday on reports of a rising U.S. rig count .

12 Bellwether ETFs

Here's a look at the performance of major exchange traded funds across key asset classes on the stock market today.

The Relative Price Strength ( RS ) Rating measures a stock's price performance over the last 12 months vs. all stocks and ETFs, on a scale of 1 to a best-possible 99.

SPDR S&P 500 ( SPY ), -0.2%, RS 54

PowerShares QQQ ( QQQ ), -0.4%, RS 56

SPDR Dow Jones Industrial Average (DIA), -0.4%, RS 58

IShares Core S&P Mid-Cap (IJH), +0.1%, RS 65

IShares Russell 2000 (IWM), +0.5%, RS 73

IShares MSCI EAFE (EFA), -1.1%, RS 32

Vanguard FTSE Emerging Markets (VWO), -0.2%, RS 45

SPDR Gold Shares ( GLD ), -0.9%, RS 29

United States Oil ( USO ), +1.9%, RS 19

IShares Core U.S. Aggregate Bond (AGG), -0.3%, RS 32

PowerShares DB U.S.$ Bullish (UUP), +0.3%, RS 54

IPath S&P 500 VIX Short-Term Futures (VXX), -0.6%, RS 2

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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