Investors have been showing a more negative sentiment towards commodities in the past few weeks, ETF Securities has found.
In its latest 10-page research note, the exchange-traded fund provider also noted that improvement in the US economy and labour market should benefit cyclical assets.
The report also noted that among commodities long gold and silver exchange-traded products saw $88m (£54.7m) and $46m (£28.6m) of outflows respectively because of negative sentiment, despite strong demand for the raw metals.
According to the report, in the US, more than 50 per cent of silver demand had come from industrial applications.
IT also noted that nickel bucked the trend as the price dropped to a six-month low as London Metal Exchange stocks increased.
Profit-taking also drove $7m(£4.3m) of outflows from long coffee exchange-traded products.
Simona Gambarini, associate director research at ETF Securities, said: “With most commodities trading at multi-year lows, and investors mostly short-positioned, we believe commodities are looking increasingly attractive at current levels.”
Adviser view
Scott Gallacher, director of Leicester-based Rowley Turton, said: “Fund managers and investment specialist sometimes use gold in their portfolios – sometimes for speculation, sometimes for protection.
“However they are normally using it in a tactical short-term basis, and have to have a great deal of expertise to do it. For the rest of us, gold should be something to make beautiful jewellery from; for investment, there are much better places for your money.”
