Bringing you live news and features since 2006 

Gold remains investor’s favourite


ETF Securities writes that gold remains the investor’s favourite, notching up a fourth week of inflows due to political and policy uncertainty.
The firm says that investors have been lured to gold’s defensive characteristics as the Eurozone remains mired in political uncertainty with Dutch and French elections just around the corner.

“Meanwhile the ECB has hinted at temporarily moving away from its capital key in order to subvert the problems associated with its limited pool of bonds for its quantitative easing programme. Expanding its QE activities is likely to heap pressure on the Euro and investors are looking to gold as a monetary devaluation hedge. Gold inflows were at a 30 week high, totalling USD192.1 million last week.”

In terms of oil, the firm writes that profit-taking in oil continues for fourth consecutive week despite OPEC production cuts. “OPEC Secretary General Barkindo indicated his optimism that the cartel can sustain a higher level of compliance than the 90 per cent reported in January. Investors, however, appear less than convinced: We believe that oil prices will remain under pressure in the near term as US oil production and inventories continue to grow. Outflows from oil ETPs last week totalled USD12 million mostly from WTI oil ETPs.”

Meanwhile, natural gas ETPs received largest inflows since June 2015 after prices dropped another 6.6 per cent. “Natural gas prices reached the lowest level since early November following unseasonably warmer weather in the US, leading to lower demand across all sectors. The sharp price declines have prompted bargain hunting by investors, with inflows totalling USD12.8 million – the largest inflows in 20 months.”

ETF Securities reports that copper has bucked the trend of industrial metal inflows, with largest outflows in 14 weeks. Profit-taking by investors totalled USD21.9 million last week. “The copper price has benefited from outages in mines that account for close to 12 per cent of global capacity. If these outages last for another few weeks, we are likely to see another year of a supply deficit in 2017. The deep capex cuts we have seen over the past few years will take longer to materially bite into supply and so copper inventory could remain elevated for several years.”

US Dollar ETPs recorded a third consecutive week of outflows, totalling USD7 million. A lack of clarity over potential policy from the Trump Administration is having a negative effect on investors, ETF Securities writes. “We expect further softness for the USD in coming weeks as the Fed holds of on rate hikes ahead of the release of President Trump’s budget release in mid-March.”

Latest News

HSBC Asset Management’s (HSBC AM) ETF and Indexing business has passed USD100 billion in assets under management (AUM), reflecting its..
Amundi’s ETF Market Flows Analysis for April reveals that investors added EUR54.1 billion to global ETFs in April with equities..
VanEck has reached USD10 billion in assets under management in Europe for the first time in April 2024...
Global index revenues increased 9.3 per cent in 2023, totalling a record USD5.8 billion, according to a benchmark study published..

Related Articles

Dan Miller, IQ-EQ
With just over a week to go till T+1 settlement begins in North America, Canada and Mexico, time is of...
Emily Spurling, Nasdaq
Last October’s ETF Express US Awards 2023 found Nasdaq winning Best Index Provider – ESG ETFs and Best Index Provider...
Vinit Srivistava, MerQube
Index provider, MerQube, launched in 2019, with the aim of providing a “technology-driven answer to the most complex, rules-based investment...
Sean O' Hara
Pacer ETFs has announced the launch of three Cash Cows UCITS ETFs. The firm writes that this will give European...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by