Precious metals net second biggest weekly inflows on record: BAML

LONDON (Reuters) - Precious metals enjoyed their second biggest inflows in the week to Wednesday, Bank of America Merrill Lynch said on Friday, as festering trade tensions and global growth woes triggered a rush for safe haven assets.

A total of $2.8 billion was sucked into precious metal funds during the week, while bond funds took in $9.2 billion in their 38th week of inflows. Meanwhile U.S. equity funds suffered their ninth largest outflows ever, losing $16.4 billion, said BAML citing EPFR data.

The moves come as investors grapple with a nearly 15-month trade war between the United States and China; warnings that Germany, Europe’s largest economy, is likely heading into recession; and a slowdown in China’s industrial output.

Reflecting investors’ nervy outlook, BAML’s “Bull & Bear” gauge moved back to 0.7 from 0.8 the week before, showing investor positioning is still “extreme bearish”, the bank said.

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