Investors took profits from recent long positions as USD rebounded last week. While net inflows remained positive for silver and platinum ETFs, net outflows were recorded in gold and platinum ETFs. While prices of gold and other precious metals may correct after the rally, downsides would be limited as long as positive catalysts – Fed's return to QE, global economic imbalance and sovereign concerns in peripheral European economies- stay in the market.

Gold: 5 out of 10 ETFs under our coverage recorded declines in holdings last week. SPDR Gold Trust dropped -117.22K oz, or -0.28%, to 41.74M oz while Gold Bullion Securities lost -52.86K oz, or -1.29%, to 4.04M oz. Holdings in Julius Baer Physical Gold Fund and ZKB Gold ETF also slipped more than -20K oz during the week. The only ETF gaining was ETFS (London) which added -11.23K oz, or -0.26% to 4.27M oz. On net, total holdings contracted -211.33K oz, or -0.32% to 66.34M oz.

Silver: Silver ETFs climbed slightly higher last week. ZKB Silver ETF fell -471.68K oz, or -0.61%, to 77.02M oz while ETFS (London) slid -52.17K oz, or -0.18%, to 29.66M oz. However, the declines were offset by rise in ETFS (US) which added +598.56K oz, or +5.01%, to 12.55M oz. Total holdings edged +74.70K oz, or +0.01%, to 534.02M oz.

Platinum: Holdings in platinum ETFs gained +8.73K oz, or +0.84%, to 1.05M oz, driven by increases in ETFS (London), ZKB Platinum ETF and ETFS (Australia).

Palladium: Palladium pulled back after a rally in the prior week. Although ETFS (London) soared +4.98K oz, or +0.92%, to 548.36K oz and ETFS (Australia) added +925.72 oz, or +18.15%, to 6.03K oz, gains were offset by the drop in ZKB Palladium ETF. Total holdings in palladium ETFs slashed -6.90K oz, or -0.37%, to 1.88Moz last week.