Ukraine Crisis Drives Cash to Gold, Nickel ETFs

Lingering tensions in Eastern Europe spurred inflows to select gold and nickel exchange traded products last week, according to ETF Securities.

In a research note out Monday, the firm said long gold ETPs hauled in$36 million last week as investors sought safe-haven plays in preparation of further deterioration of the crisis in Ukraine.

“While Ukraine’s presidential elections on May 25th might be considered a step in the right direction, the situation in the Ukraine remains tense and a worsening of the crisis seems likely. Against the Ukrainian and Western governments wishes, Russian separatists in the Ukraine pushed ahead with a referendum on self-rule on Sunday, with the small groups polled voting for separation,” said Nicholas Brooks and Simona Gambarini of ETF Securities in the note.

To this point in May, some of the largest gold ETFs have seen outflows. The SPDR Gold Shares (NYSEArca: GLD) and the iShares Gold Trust (NYSEArca: IAU) have lost a combined $224 million since the start of the month. [Ukraine Crisis Lifts Gold ETFs]

ETF Securities points out that its London-listed nickel ETP, the ETFS Physical Nickel, saw its biggest inflows in a month last week.