This week's highlights
Global equities ended the week lower on ongoing geopolitical risks and mixed economic data. The Australian share market posted a modest gain, with small cap ETFs (SMLL and VSO) outperforming. Oil prices slumped on the prospect of easing U.S.-Iran tensions and demand concerns. OOO declined 7.5% for the week and global energy companies (FUEL) were also impacted. Technology heavy funds including NDQ and CNEW were also amongst the week’s poorest performers.
Precious metals benefited from the risk-off sentiment, pushing higher. Spot gold added 0.7%, hitting new 6-year highs, while silver jumped 6.4%. ETPMAG was the week’s top performing ETF, while platinum (ETPMPT), gold (QAU and GOLD) and a basket of four precious metals (ETPMPM) were all amongst the top performers. Gold mining ETFs (MNRS and GDX) benefited, each adding over 6% for the week.
Total flows into domestically domiciled ETFs were $199m, while outflows totalled $35m. The biggest inflows were into cash and fixed income funds (AAA, IAF, HBRD, CRED and ISEC). Gold (GOLD) also saw strong flows. The largest outflow was from UBA.
STW and AAA were the most traded funds last week, while A200 and VHY saw above average volumes.
ETFS Physical Silver (ETPMAG) returned 7.1% for the week and the metal is now trading at US$16.20 per ounce, over 14% above its May low. Silver has lagged gold in recent years, despite growing industrial demand from technology-related industries, with the closely-monitored gold-to-silver price ratio recently touching levels not seen since 1992.