Gold prices inch up with record in sight ahead of key U.S. jobs data
This year’s rebound in global markets hit some turbulence last week, with the exception of commodities, based on a set of ETFs through Friday’s close (Feb. 10).
WisdomTree Enhanced Commodity Strategy Fund (GCC) rose 1.7% last week, posting the only gain for the major asset classes. The advance highlights the potential diversification benefits of commodities, but GCC continues to trade in a tight range. Last week’s increase, as a result, looks like noise in a flat market.
The rest of the field fell as markets digest the year-to-date rallies amid mixed data for the economic outlook. The biggest decline for the major asset classes last week: real estate shares ex-U.S. (VNQI), which closed lower for a second week with a 2.5% loss.
The Global Market Index (GMI.F) also lost ground, slipping 1.3% — the first weekly decline in the past three. This unmanaged benchmark holds all the major asset classes (except cash) in market-value weights via ETFs and represents a competitive measure for multi-asset-class portfolio strategies.
For the one-year trend, all the major asset classes are posting losses. The red ink varies from a mild 2.2% decline for commodities (GCC) to a steep 17.8% slide for real estate ex-U.S. (VNQI).
GMI.F is also posting a one-year loss of 10.0%.
All the major asset classes are also suffering relatively deep drawdowns. The softest peak-to-trough decline at the moment is found in U.S. junk bonds (JNK), which ended last week at 10.3% below its previous peak.
Meanwhile, corporate bonds ex-U.S. (PICB) are posting the deepest drawdown: -26.3%.
GMI.F’s drawdown: -13.6%.
