Investments in precious metal ETFs remained robust last week as global economic uncertainties persisted. Sovereign concerns in the European periphery showed no signs of diminishing and contagion appeared accelerating. Moody's last week downgraded Ireland's credit rating by 5 notches and warned that further reduction is possible. The rating agency also warned that it may lower ratings of Greece and Spain. US Treasury yields soared, partly amid better economic prospect and partly due to worries over the countries' deficits outlook. While gold retreated as yields rose, capital inflows into gold ETF remained strong.

Most gold ETFs recorded increases in holdings, resulting in net gains of +642.15K oz, or +0.97%, last week. The best performer was SPDR Gold Trust which gained +292.87K oz, taking the year-to-date investment to 5.32M oz and combined gold holdings to 41.76M oz. SPDR Gold Trust is the world's largest gold ETF, representing over 60% of the market share. Addition of +279.10K oz brought total holdings of iShare Gold Trust to 3.75M oz. Year- to-date, the fund's total investment amounted to 1.20M oz. Other funds showing gains included ZKB Physical Gold Fund, Gold Bullion Securities, ETFS Gold Trust and ETFS Precious Metals Basket Trust. The 2 ETFs recording redemptions during the week were ETFS (London) and New Gold Fund.

Investments in silver ETFs accelerated and iShares Silver Trust, which recorded +31.78M oz increase in holdings, contributed most of the gains. All ETFs issued by ETF Securities rose last week with ETFS (London) adding +632.29K oz, ETFS (Australia), climbing +17.52K oz and the 3 NYSE-listed funds together gaining +9.52M oz. Since the beginning of the year, silver investment reached 130.53Koz, taking total holdings to 595.40M oz.

A week of mixed performance in PGMs. While holdings in platinum ETFs rose 35.61K oz, or +3.04%,to 1.21M oz, redemption of -35.56Koz was recorded in palladium investments, taking total holdings to 2.19M oz. Decline in palladium holdings was mainly due to liquidation of previous long positions and a sharp rise last week.