Oil ETFs Rally as Gold and Silver Retreat in Volatile Week
Canadian energy ETFs rallied alongside oil prices last week as sanctions on Russia tightened global supply expectations, while precious metals corrected sharply following record highs and easing safe-haven demand.
Are Safe-Haven Trades Losing Momentum?
Markets turned risk-on last week as optimism grew over U.S.–China trade talks, prompting investors to unwind safe-haven positions in gold and silver. The shift came after Washington and Beijing reached a preliminary agreement on export controls, agricultural trade, and shipping levies, ahead of the Trump–Xi summit later this week.
Gold, which had surged nearly 60% this year, slipped more than 2% as traders took profits and futures margin requirements were raised. Despite the short-term pullback, structural drivers like central bank buying and inflation fears remain intact. Silver also corrected after weeks of record-setting gains, dropping below $48 per ounce as tight physical supply in London eased with new shipments arriving from Asia and North America.
Oil ETFs Rebound as Sanctions Tighten Supply
Oil prices climbed sharply last week, with WTI crude rising toward $61 per barrel after Washington imposed fresh sanctions on Rosneft and Lukoil—companies that account for over half of Russia’s oil production. The move sparked renewed supply concerns, lifting Canadian energy-linked ETFs.
Among key performers:
- Ninepoint Energy Fund (NNRG.U) gained 3.8%.
- Global X Crude Oil ETF (HUC) advanced 2.5%, supported by inflows above CAD 950K.
While today’s trading saw modest stabilization, the rally underscored investor sensitivity to geopolitical developments ahead of this week’s Trump–Xi meeting in South Korea.
Gold and Silver ETFs Face Heavy Profit-Taking
In contrast, precious metals ETFs posted notable declines.
- iShares Gold Bullion ETF (CGL) fell 2.9%, even as inflows exceeded CAD 24 million.
- BMO Gold Bullion ETF (ZGLD) lost 3%, while Purpose Gold Bullion Fund (KILO) dropped 2.5%.
- iShares S&P/TSX Global Gold Index ETF (XGD) slid 6.9%, extending a correction from earlier record highs.
- On the silver side, iShares Silver Bullion ETF (SVR) fell 11.4%, and Purpose Silver Bullion Trust (SBT.B) dropped 9.1% amid broad profit-taking.
Despite the pullback, both gold and silver remain among Canada’s top-performing ETF segments year-to-date, reflecting their enduring role as long-term inflation and volatility hedges.
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Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.
