Investors nearly 5$ billion from GLD.etf to USO.etf

30.11.2016 / 03:50

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Mike McGlone, commodity strategist at Bloomberg Intelligence, shared that ETF investors are selling precious metals (GLD) and buying energy (USO) at extremes similar to those that have marked lows in the gold-to-crude ratio in the past. Monthly precious-metals outflows were near $4.3 billion as of Nov. 25, on track for the most since June 2013. About $1.7 billion of inflows to energy ETFs, most of which directly track crude oil futures, are on pace for the largest month since February. Similar flows marked a low in the gold-to-crude ratio in 2015.

Gold ETF Holdings and Price Divergence Similar to 2012 Peak:

If history is any guide, November's inflows of $1.7 billion into energy ETFs may be an ominous indicator for prices. The correlation between monthly net energy ETF flows and the percent change of the Bloomberg Energy Subindex has been near negative 0.6 since 2009.:

etf3

Commodity ETF money flow table:

Bloomberg

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Investors nearly 5$ billion from GLD.etf to USO.etf

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