Gold Bullion from the American Precious Metals Exchange (APMEX) is seen in this picture taken in New York, September 15, 2011. REUTERS/Mike Segar (UNITED STATES – Tags: BUSINESS)
Index Performance
At the close of LSEG Lipper’s fund-flows ending October 8, 2025, U.S. broad-based indices were mixed across the board: S&P 500 TR (+0.29%), Nasdaq (-2.53%), Russell 2000 (-3.29%), and DJIA (-2.73%).
Macro Viewpoint
The race is on, with precious metals sprinting toward the finish line. Gold, platinum, palladium and, silver have each posted favorable year-to-data gains. However, investors should not focus on who’s leading the race, but question what’s driving momentum.
Gold—investors’ traditional favorite—has rallied 52.03% year-to-date, rising from $2,639.12 to a recent high of $4,000, before falling slightly to $3,986. Platinum climbed 78.85% from $922.20 to $1,662. Silver was on the tails of platinum with a 74% gain, moving from $29.61 to $50. Palladium on the other hand, slightly outpaced gold and rose 54.75%, from $911.32 to $1,411.
Despite trailing its peers, gold remains a key barometer for the U.S. economy. In Q1-25, gold quickly rallied 20% amid heightened fears of a global slowdown and growing concerns surrounding a potential U.S. recession. Following weaker-than-expected Q1-25 GDP values, investors prepared for the worst. Favorable Q2-25 GDP data temporarily boosted investor confidence, however underlying economic data paints a different picture. Continuous weaker-than-expected labor values combined with rising commodity costs have left investors cautious. Even as digital assets gain broader recognition, investors still seek traditional stores of value amid policy uncertainty, government shutdowns, and trade tensions.
Fund Flows by Asset Type
U.S. money market funds lost momentum this week, posting net inflows of $14 billion, a sharp decrease from the $46.6 billion recorded in the prior week. Alternative investments attracted $1.6 billion, rebounding from a modest $397 million in the prior period. Equities on the other hand, showed signs of fatigue. U.S. equity funds entered negative territory and posted $2.1 billion in net outflows, reversing their prior week’s impressive $42.3 billion net inflow. Meanwhile, U.S. mixed-assets funds continued their downward outflow, posting $436 million in net outflows.
Within the fixed income universe, there was a strong demand for U.S. taxable bond funds, recording an impressive $17.9 billion net inflow, making this a significant recovery from the prior week. U.S. municipal bonds funds saw modest interest, collecting $965 million in net flows.
Performance by Lipper U.S. Classifications
– Equity
Within the equity universe, performance was driven by Equity Leveraged Funds, which advanced 6.66% as investors sought to capitalize on market’s win streak. As tensions continue to escalate, we will see if the classification will maintain its lead or dwindle due to market volatility. Basic Material Funds and Global Science & Technology Funds climbed 3.82% and 3.49% respectively, due to the rally within the commodity and technology sectors.
– Fixed Income
Within in fixed income universe, performance was driven by Emerging Markets Hard Currency Debt Funds (+0.19%), General & Insured Municipal Debt Funds (+0.16%), and Intermediate Municipal Debt Funds (+0.15%). Emerging Market strategies found support amid a weaker dollar, while municipal strategies reflect a shift in investor’s appetite toward tax-exempt vehicles. On the other hand, International and Global Income Funds declined, 0.32% and 0.14% respectively, as demand for risker credit declined.
Report Topics
Uncategorized
