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The S&P 500 Materials sector index was up +2.12% this week and the Materials Select Sector SPDR ETF (XLB) +1.72%, as fears over the banking sector and hopes of the Federal Reserve pausing rate hikes lingered.
Mounting market uncertainty, fueled by concerns about Federal Reserve policy and the recent banking crisis, has driven investors towards traditional outlets of safety like gold (XAUUSD:CUR) which nearly hit the $2,000/oz level this week.
The precious metal was also helped by declines in the U.S. dollar and Treasury yields after the Federal Reserve raised interest rates by 25 basis points but indicated it might pause its monetary tightening cycle. May Comex silver (XAGUSD:CUR) +2.1% to nearly $23/oz.
Copper futures (HG1:COM) also had a good week, rising +4.63% on the back of a weaker dollar. Meanwhile, iron ore futures (SCO:COM) extended losses and dipped -7.20% as the demand outlook is weighed by the possibility that China would reduce its crude steel production by as much as 2.5%.
Gold stocks dominated this week’s top gainers among basic material stocks ($2B market cap or more):
- Gold Fields (GFI) +8.20%
- Sociedad Quimica y Minera de Chile (SQM) +7.16%
- Hecla Mining (HL) +5.35%
- AngloGold Ashanti (AU) +5.15%
- Triple Flag Precious Metals (TFPM) +4.99%
Here are the top losers among basic material stocks:
- Scotts Miracle-Gro (SMG) -7.97%
- West Fraser Timber (WFG) –6.07%
- Vale (VALE) -5.20%
- Companhia Siderurgica Nacional (SID) -4.98%
- Braskem (BAK) -4.75%
Other materials ETFs to watch: iShares Global Timber & Forestry ETF (WOOD), Materials Select Sector SPDR ETF, Vanguard Materials ETF (VAW), iShares Global Materials ETF (MXI), SPDR S&P Metals and Mining ETF (XME), VanEck Vectors Gold Miners ETF (GDX), iShares MSCI Global Gold Miners ETF (RING), Global X Copper Miners ETF (COPX).