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Exchange traded funds that follow the price of gold and silver were on track for a second day of losses Tuesday as precious metals followed global stocks lower.

In a surprise move, Greek Prime Minister George Papandreou called a referendum and confidence vote, a development that threatens the latest European bailout. Commodities weakened Tuesday following the collapse of broker MF Global, Reuters reported.

“The euro is very weak, the dollar is strong and that has caused selling across the board. Greece has caused even more confusion by calling for a referendum and we can’t ignore the washout from the MF Global story because their positions are being unwound,” said Credit Agricole analyst Robin Bhar in the Reuters story.

Gold futures fell below $1,700 an ounce Tuesday morning.

Holdings of gold in the major ETFs that Reuters tracks have risen by over 800,000 ounces this month, the first monthly increase since July.

SPDR Gold Shares (GLD) was down 1.1% in Tuesday’s premarket after losing 1.3% the previous session. Meanwhile, iShares Silver Trust (SLV) shed 3.2% before the bell following its 2.4% decline on Monday.

iShares Silver Trust

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Disclosure: Tom Lydon’s clients own GLD and SLV.

Source: Silver ETFs Lead Declines In Precious Metals For Second Day