Gold and silver ETFs generally saw small gains today, with $Pro Ultr Silver(AGQ.US) rising by the upper single digits, while $Pro Ultr GLD(UGL.US), $iShares Silver Tr(SLV.US), $SPDR Gold Shares(GLD.US), and $Microsectors Gold Miners 3x Leveraged ETN(GDXU.US) all edged higher.
The driver is clear: weak non-farm payrolls, a faster decline in short-term Treasury yields compared to long-term yields, the US Dollar Index falling below 101, and both real interest rates and the dollar moving down, reducing the holding cost of precious metals. Interest rate cut expectations are the main engine for this wave of precious metals. As long as weak employment and dovish repricing persist, the relative attractiveness of gold and silver can be maintained. The real risk is if this expectation is reversed.
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