A record $25m of new capital flooded the market last week, bringing the monthly total to $116m. Positive economic data from the US, China and Germany along with reassurances from the President of the ECB last week have boosted investor sentiment, ETF Securities said.
The gold market took a downturn following boosts to the German manufacturing Purchasing Managers Index, the US Conference Board’s Leading Economic Indicator and Germany’s IFO and ZEW surveys. However, the outlook remains good, due to continued high sovereign risks and low interest rates, it added.
Meanwhile, adverse weather predictions in Brazil affected the price of soy beans, corn and wheat, raising concerns as to whether the country would be able to deliver the promised crop. ETFS Agriculture, however, saw the largest inflows for almost a year totalling $42.3m.
Forthcoming GDP data from the US is likely to have further impact on these markets over the next week, ETF Securities concluded.
