On Monday, the iShares Silver Trust (SLV) was down 0.4%, the Sprott Physical Silver Trust (PSLV) fell 0.8%, the SPDR Gold Shares (NYSEArca: GLD) was 0.3% lower, and the Sprott Physical Gold Trust (PHYS) dropped 0.7%. Gold exchange traded funds are struggling as traders weigh the impact of surging COVID-19 Omicron infections and the Federal Reserve's monetary policy outlook in its fight against inflation. While gold bullion is considered a hedge against higher inflation and market uncertainties, the eventual interest rate hikes would raise the opportunity cost of holding non-yielding assets like precious metals.