Advertisement
UK markets closed

  • FTSE 100

    8,139.83
    +60.97 (+0.75%)
     

  • FTSE 250

    19,824.16
    +222.18 (+1.13%)
     

  • AIM

    755.28
    +2.16 (+0.29%)
     

  • GBP/EUR

    1.1679
    +0.0022 (+0.19%)
     

  • GBP/USD

    1.2491
    -0.0020 (-0.16%)
     

  • Bitcoin GBP

    51,071.07
    -739.43 (-1.43%)
     

  • CMC Crypto 200

    1,332.22
    -64.32 (-4.61%)
     

  • S&P 500

    5,099.96
    +51.54 (+1.02%)
     

  • DOW

    38,239.66
    +153.86 (+0.40%)
     

  • CRUDE OIL

    83.66
    +0.09 (+0.11%)
     

  • GOLD FUTURES

    2,349.60
    +7.10 (+0.30%)
     

  • NIKKEI 225

    37,934.76
    +306.28 (+0.81%)
     

  • HANG SENG

    17,651.15
    +366.61 (+2.12%)
     

  • DAX

    18,161.01
    +243.73 (+1.36%)
     

  • CAC 40

    8,088.24
    +71.59 (+0.89%)
     
PROPERTY:

9 luxury homes to consider if money is no object

Ever thought about what a multimillion pound budget would buy you?

Gold, silver funds see biggest weekly outflows in three months

Reuters
·2-min read
FILE PHOTO: Granules of 99.99 percent pure gold and silver are seen in glass jars at the Krastsvetmet non-ferrous metals plant in the Siberian city of Krasnoyarsk

(Reuters) - Gold and silver mutual funds and ETFs witnessed the biggest outflows in three months in the week ended Feb. 10 as investors put their money into soaring equities and high-yielding bond markets.

Investors net sold $1.4 billion in precious metal funds in the week ended Feb. 10, according to weekly data available for 338 precious metal funds on Refinitiv Lipper.

(Graphic: Flows into precious metal funds, https://fingfx.thomsonreuters.com/gfx/mkt/ygdvzedmmpw/flows%20into%20funds.jpg)

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.

ADVERTISEMENT

iShares Silver Trust saw outflows of $919.1 million, while SPDR Gold Shares had net sales of $621 million in the last week.

The outflows from precious metal funds also came as the U.S. Treasury yields hit an over 6-month high, on hopes large stimulus measures from the United States would accelerate the country's economic growth.

(Graphic: Biggest outflows in the week ended Feb. 10, https://fingfx.thomsonreuters.com/gfx/mkt/gjnvwzxajpw/precious%20metal%20funds.jpg)

The data showed global bonds also had inflows of $18.03 billion in the week ended Feb. 10.

"'Gold-as-a-safe-haven' isn't incredibly appealing for investors during an incredible economic recovery," said TD Commodities in a report.

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.

(Graphic: Correlation between forward inflation swap and gold prices, https://fingfx.thomsonreuters.com/gfx/mkt/azgpoeknjpd/correlation.jpg)

On the other hand, investors have been piling into some platinum ETFs in the past few weeks, the data showed.

GraniteShares Platinum Trust had an inflow of $4.6 million in the week ended Feb. 10.

Platinum prices soared to their highest in nearly 6-1/2 years on Tuesday, fuelled by expectations a rebound in the global economy would stoke demand for the metal used in autocatalysts.

(Reporting By Patturaja Murugaboopathy; Editing by Krishna Chandra Eluri)