The S&P materials sector index was down -3.51%, and the Materials Select Sector SPDR ETF (XLB) -3.42% this week, weighed down by the worst financial crisis in 14 and a half years.
During the week, two U.S. regional banks – Signature Bank (SBNY) and SVB Financial’s (SIVB) Silicon Valley Bank – were taken over by U.S. regulators due to liquidity issues. The bank crisis also reached Europe, with Switzerland’s second-biggest bank Credit Suisse (CS) revealing “material weaknesses” in its reporting procedures.
Gold shone through the chaos, surging more than 2% Friday to cap the yellow metal’s biggest weekly gain in three years as investors flocked to the safe haven.
Front-month Comex gold (XAUUSD:CUR) for March delivery closed +2.6% to $1,969.80/oz, its highest since April 2022 and jumping 5.8% for the week in its largest one week percentage gain since the week ending April 9, 2020, while March silver (XAGUSD:CUR) ended +3.5% to $22.351/oz, surging 9.7% this week in its best week since August 2020.
This week’s top gainers among basic material stocks ($2B market cap or more) were dominated by gold sector stocks:
- Kinross Gold (KGC) +11.92%
- Gold Fields (GFI) +11.27%
- Newmont (NEM) +10.86%
- Osisko gold royalties (OR) +10.01%
- AngloGold Ashanti (AU) +8.06%
Non-precious metal stocks accounted for the top losers among basic material stocks:
- Steel Dynamics (STLD) -10.23%
- Companhia Siderurgica Nacional (SID) -10.18%
- Alcoa (AA) -9.69%
- Mosaic (MOS) -9.47%
- Alpha Metallurgical Resources (AMR) -9.43%
Other materials ETFs to watch: iShares Global Timber & Forestry ETF (WOOD), Materials Select Sector SPDR ETF, Vanguard Materials ETF (VAW), iShares Global Materials ETF (MXI), SPDR S&P Metals and Mining ETF (XME), VanEck Vectors Gold Miners ETF (GDX), iShares MSCI Global Gold Miners ETF (RING), Global X Copper Miners ETF (COPX).