Canadian precious-metal and oil ETFs came under pressure during the week ending Friday, June 12, as investors worried that higher energy prices linked to the U.S.-Iran conflict could push inflation higher and keep central banks focused on tighter monetary policy.
Silver ETFs experienced the sharpest decline, while gold funds also moved lower. However, despite the price weakness, investors continued to put money into precious-metal ETFs, suggesting that some market participants viewed the decline as a potential buying opportunity.
The market backdrop changed dramatically over the weekend after reports of a U.S.-Iran peace agreement. Expectations of improved energy supply and the potential reopening of the Strait of Hormuz pushed oil prices lower while helping gold and silver recover.
Precious-Metal ETFs Decline During the Week
Canadian precious-metal ETFs declined an average of 3.82% during the week, while the country's two oil ETFs fell approximately 2.57%.
Despite the decline, Canadian precious-metal ETFs attracted more than C$500 million in new investment flows during the week.
The performance was largely influenced by concerns over inflation, interest rates, the U.S. dollar and government bond yields.
Gold and silver do not generate regular income, so rising bond yields and expectations of higher interest rates can make them relatively less attractive to some investors.
Energy Prices Remain a Major Market Driver
Energy prices were one of the biggest factors affecting financial markets during the period.
The conflict involving the United States and Iran raised concerns about disruptions to oil supplies through the Strait of Hormuz, an important global energy transportation route.
Higher crude oil prices can increase transportation and production costs across the economy, potentially adding to inflationary pressure.
As inflation concerns increased, investors became more cautious about precious metals. Gold was trading around $4,200 per ounce, while silver was near $67 per ounce toward the end of the week.
A stronger U.S. dollar and higher Treasury yields also contributed to pressure on precious-metal prices.
Weekend Peace Deal Changes Market Sentiment
The market outlook shifted significantly over the weekend following reports of a peace agreement between Washington and Tehran.
The reported agreement included measures related to sanctions relief, the removal of blockades and the reopening of the Strait of Hormuz.
Oil prices reacted quickly to expectations of improved supply conditions. Crude prices reportedly fell more than 5% on Monday, reaching around $80 per barrel and a two-month low.
At the same time, gold and silver prices recovered. Gold moved back above $4,300 per ounce, while silver moved toward $71 per ounce.
The change in oil prices also reduced some of the inflation premium that had been weighing on precious-metal markets.
Canadian Gold ETF Performance
According to the data referenced in the report, 31 Canadian precious-metal ETFs declined an average of 3.82% during the week.
Despite the losses, the group attracted approximately C$510.8 million in new money and held around C$9.06 billion in assets.
Gold ETFs accounted for most of the investment flows.
The 16 Canadian gold ETFs tracked in the report, with combined assets of approximately C$7.97 billion, declined an average of 3.56% but attracted around C$506.7 million in weekly inflows.
One of the biggest contributors was the BMO Gold Bullion Hedged to CAD ETF (ZGLH), which reportedly attracted approximately C$342.1 million during the week. The ETF itself declined around 4.15% during the period.
The Purpose Gold Bullion Fund, CAD-Hedged (KILO) was among the more resilient gold funds, declining approximately 2.61% while recording around C$1.5 million in inflows.
Silver ETFs Face Greater Pressure
Silver ETFs experienced a stronger sell-off than gold funds.
The 11 silver ETFs included in the report declined approximately 5.78% during the week. However, the segment still recorded positive net flows of around C$3.7 million.
The iShares Silver Bullion ETF, CAD-Hedged (SVR), one of the largest funds in the segment, fell approximately 7.86% during the week.
Despite the price decline, the fund reportedly attracted most of the silver ETF inflows during the period.
The Purpose Silver Bullion Trust ETF (SBT.B) also declined, falling approximately 7.73%, while its investment flows remained broadly unchanged.
Oil ETFs Remain a Strong Performer in 2026
Canadian crude-oil ETFs were also affected by the changing market environment.
The country's two crude-oil funds declined approximately 2.57% during the week. However, they remained among the stronger-performing ETF categories in 2026, with gains of approximately 36.26% for the year.
The Global X Crude Oil ETF (HUC) remained the dominant fund in the segment but reportedly recorded no significant net flows during the week.
If oil prices continue to fall because of improved geopolitical conditions and increased supply expectations, crude-focused ETFs could potentially give back some of their earlier gains.
What Investors Should Watch Next
The coming days could be important for precious metals and energy markets as investors focus on central-bank decisions and geopolitical developments.
The Federal Reserve is expected to remain a key focus for the metals market, particularly because interest-rate expectations have been influenced by inflation concerns.
Investors will also be watching developments from other major central banks, including the Reserve Bank of Australia and the Bank of Japan.
If oil prices remain lower and geopolitical tensions ease, inflation concerns could weaken. That could potentially support precious metals by reducing expectations for tighter monetary policy.
However, the outlook remains uncertain. Any renewed geopolitical tensions, changes in the peace agreement or unexpected inflation data could quickly change market sentiment.
Key Takeaways
- Canadian precious-metal ETFs declined approximately 3.82% during the week.
- Silver ETFs experienced greater losses than gold ETFs.
- Precious-metal ETFs attracted approximately C$510.8 million in new money.
- Gold ETFs accounted for the majority of the inflows.
- Canadian crude-oil ETFs declined around 2.57% for the week but remained strongly positive for 2026.
- A reported U.S.-Iran peace agreement changed the market outlook and pushed oil prices lower.
- Gold and silver prices rebounded following the shift in geopolitical sentiment.
- Central-bank policy and inflation data are likely to remain important drivers for precious-metal markets.
Investment Disclaimer
This article is provided for informational and educational purposes only and should not be considered investment, financial, tax or legal advice. ETF prices, performance figures and market conditions can change rapidly. Past performance does not guarantee future results. Investors should conduct their own research and consult a registered financial professional before making any investment decision.
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