Macroeconomic uncertainty boosts demand for gold and oil exposure

Continued uncertainty about inflation and deepening concerns over sovereign default risks in Europe are making the commodities increasingly attractive as hedging tools

Investors turn to gold as economic worries deepen

Worries about the scale of sovereign debt – and the threat of a Greek government debt default in particular – are leading investors to accumulate positions in precious metals-based exchange-traded commodities (ETC), according to an ETF Securities report. ETC inflows have recently risen by $164 million, led by physically backed gold products.

"Rising market volatility, global economic uncertainty and geopolitical unrest have increased interest in gold as both a short- and long-term investment,"