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The Materials sector of the renowned S&P 500 had a rather lukewarm performance this week, trailing at -0.46% with the Materials Select Sector SPDR Fund (NYSEARCA:XLB) at -0.5% behind it.
Over in the world of precious metals, Gold futures (XAUUSD:CUR) prices had a notable uptick on Friday, hitting approximately $2,058.50/oz, indicating its most substantial daily gain since mid-December. Meanwhile, March silver (XAGUSD:CUR) experienced a 3.1% hike, resting at $23.41/oz.
The surge in precious metal prices may be attributed to rising tensions in the Middle East, with the U.S. and U.K. embarking on over 60 airstrikes on Houthi targets in Yemen. Despite a boost in the dollar and Treasury yields after the slightly stronger than expected U.S. inflation data, the safe-haven appeal of precious metals faced these odds and emerged victorious.
In another part of the market, Copper futures (HG1:COM) also had a commendable week, as reported by Reuters. The benchmark three-month copper (HG1:COM) on the London Metal Exchange witnessed a positive trend, trading at +0.6% at $8,424/metric ton, subsequent to sliding to a one-month low of $8,320 on Wednesday.
Peering into the top gainers for the week among basic material stocks (those with a market cap of $2B or more), the spotlight inevitably falls on the WD-40 Company (WDFC). The company’s shares soared by a remarkable +17.56% following an impressive performance on both the top and bottom lines for Q1.
- Osisko gold royalties (OR) +7.65%
- Eldorado Gold (EGO) +7.61%
- Gold Fields (GFI) +5.16%
- Kinross Gold (KGC) +4.62%
However, it’s not all sunshine and rainbows as some basic material stocks did not fare so well this week. Sigma Lithium (SGML) witnessed a decline of -12.61%, topping the list of losers. This is followed closely by Sociedad Quimica y Minera de Chile (SQM) at -9.77% and Nutrien (NTR) at -7.83%.
- Gerdau (GGB) -7.74%
- Mosaic (MOS) -6.48%
In addition, other materials ETFs worth keeping an eye on include: 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), and Global X Copper Miners ETF (COPX).
