Gold And Palladium ETFs Build On Momentum As Trump Jitters Intensify

New York (Feb 6)  Exchange traded funds tracking major stock indexes fell on Monday, as investors digested more earnings reports and news that tech companies had joined forces to oppose the Trump travel ban.

SPDR S&P 500 ( SPY ) gave up 0.2% on the stock market today  even as it trades near a 52-week high of 229.71. Financials led declining S&P 500 sectors in morning trade.

VanEck Vectors Junior Gold Miners ( GDXJ ) charged 1.6% higher and VanEck Vectors Gold Miners ( GDX ) added 1.1% in early trade as political worries continue to kindle demand for gold. The funds eased back a tad in late morning trade.

Year to date through Friday's close, GDXJ and GDX have advanced 24% and 17%, respectively.

Activity in the stock market has been subdued since President Trump signed an executive order Jan. 27, invoking a temporary ban on immigrants from seven mostly Muslim countries.

That order was blocked by a federal judge on Friday and on Monday nearly 100 companies including Apple ( AAPL ), Microsoft ( MSFT ), Alphabet (GOOGL) and Facebook (FB) filed a legal brief arguing the travel ban "inflicts significant harm on American business."

Elections in Europe this year are adding to the uncertain mood, with Marine Le Pen, the leader of France's far-right National Front, throwing her hat in the ring for the presidency on Sunday with a speech that drew parallels to Trump on the campaign trail.

SPDR Gold Shares (GLD) sits 10% below its July high of 131.15. But the ETF  jumped 2.3% last week to take its year-to-date gains to 6% through Friday's close.

The U.S. dollar index fell to a two-month-plus low last week. Gold and the dollar tend to move in opposite directions.

ETFS Physical Palladium (PALL) spiked nearly 3% in the early Monday session and has vaulted 10% so far in 2017.

Source: NASDAQ