Gold’s Slide Hurting These Country ETFs: SPDR Gold Trust (GLD), iShares Gold Trust (IAU)

Southern Copper Corp (NYSE:SCCO) and Compania de Minas Buenaventura SA (NYSE:BVN) are EPU’s second- and third-largest holdings, combing for nearly 21.3 percent of the ETF’s weight. EPU is down more than 13 percent its 2013 high and a move below $39 would have the ETF joining gold in bear market territory.

iShares MSCI South Africa Index (NYSEARCA:EZA)
An easy call to make here as South Africa is the fifth-largest gold producer in the world, just ahead of Peru. EZA is off 3.6 percent and gold’s fall is only exacerbating a bad situation for this ETF.

EZA has already been plagued alarmingly high unemployment rate (over 20 percent) and the laggard performances of the largest emerging markets this year. Gold’s slide has the ETF threatening support at $60 and if that area gives out, EZA could return back to the October 2011 low around $52.

EZA has other problems, too. South Africa is the largest platinum producer and the second-largest palladium producer behind Russia. The ETFS Physical Platinum Shares (NYSEARCA:PPLT) and the Physical Palladium Shares (NYSEARCA:PALL) are off 4.7 percent and 5.5 percent, respectively on Monday.

This article was originally written by The ETF Professor, and posted on Benzinga.