Precious metal funds record biggest weekly outflow
- 16 Feb 2021
Gulf Today Report
Gold and silver mutual funds rose, their biggest outflows in three months as investors focus on investing in soaring equities and high-yielding bond markets.
iShares Silver Trust saw outflows of $919.1 million, while SPDR Gold Shares had net sales of $621 million in the last week.
The rise of the precious metal funds aligned with the jump in US Treasury yields on hopes of US stimulus measures accelerating economic growth.
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In a report, TD Commodities said: "'gold-as-a-safe-haven' isn't incredibly appealing for investors during an incredible economic recovery."
It also said Gold remains negatively correlated to 5-year/5-year forward inflation swaps, reflecting Gold's less attractive investment profile as nominal yields rise.
On the other hand, investors put $43.1 billion in equities funds, as global stocks surged on optimism over vaccine roll-outs and hopes of a bigger fiscal package from the United States.