Investors have flocked to precious metal exchange-traded commodities (ETCs) after concerns over Italian sovereign debt heightened last week, according to ETF Securities.
The company’s latest report shows gold-related products witnessed their strongest sales in one month, as net inflows into its physically-backed gold ETCs came to more than $116m (£72m) last week.
“The gold price rose above $1,800/oz last week, as the resolution of the eurozone sovereign crisis appeared further off after Italian bonds broke through the 7% ‘point of no return’ level,” the firm says. “Investors embraced gold as a defensive asset amidst the market volatility.”
ETF Securities also notes that physically-backed silver ETCs benefited from strong interest last week, as investors sought further havens from the eurozone debt crisis. Inflows into the firm’s silver ETCs reached $27.6m, the highest in four months.
In addition, the company says inflows into copper-based ETCs hit a ten-week high as investors looked for bargains amid recent falls in the value of industrial metals while crude oil OTCs recorded profits for a sixth week running.
To receive more relevant articles like this one, why not sign up to our briefings and breaking alerts by clicking here.