Inflows into physical gold last week reached a six week high, says a new report by ETF Securities
“Commodity ETPs saw their largest inflows in six weeks, with bargain-hunters attracted by depressed valuations,” according to Nitesh Shah, Associate Research Director and Nicholas Brooks, Head of Research and Investment Strategy at ETF Securities. “Several commodities, including Brent, platinum, palladium and most industrial metals rose last week – rebounding on the back of the better investor sentiment toward commodities. With many commodities trading so close to their marginal cost of production, we believe that prices cannot fall much lower without triggering a supply response. Better-than-expected GDP and industrial production data from China, the world’s largest consumer of commodities, also helped boost cyclical commodity prices.”
Highlights from the report include:
- Inflows into physical gold reach six week high
- Bargain hunting drives US$12.3mn into long crude oil ETPs, a seven week high
- ETFS Daily Leveraged Natural (LNGA) attracts US$9.mn as Henry Hub prices slide 4.6%
- ETFS Platinum Trust (PPLT) sees largest outflow since March on profit-taking
- An 11% decline in coffee prices led to profit-taking for ETFS Daily Short Coffee (SCFE)
The full report can be downloaded via this link
