It's a good day to be invested in these three ASX exchange traded funds (ETFs) as they surge to trade at their highest prices in more than a year.
Eagle-eyed investors might notice a common theme between them.
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3 ASX ETFs posting 52-week highs today
The Global X Physical Gold (ASX: GOLD) unit price soared 2.2% earlier today to peak at a record high of $28.65.
Meanwhile, that of Betashares Gold Bullion ETF – Currency Hedged (ASX: QAU) jumped 2.1% to reach $17.61 – the highest it's been in nearly two years.
Simultaneously, the unit price of Global X Physical Silver (ASX: ETPMAG) soared 2.5% to a near-12-year high of $36.17 this morning.
As the name suggests, the three ETFs are backed by physical holdings of precious metals. They seek to provide returns correlated to the prices of either gold or silver bullion.
What's driving the funds sky high?
The value of the two metals has been soaring lately amid what appears to be continued concerns of inflation and rising interest rates. Not to mention, worries of broader economic stability.
Such concerns are likely turning investors towards traditional inflation hedges and safe haven assets like gold and silver.
The United States Federal Reserve hiked interest rates in the globe's largest economy by 0.25% overnight. Its offical rate now sits in the range of 5% to 5.25%. It follows the broadly surprising 0.25% hike instigated by the Reserve Bank of Australia earlier this week. That brought our official cash rate to 3.85%.
Additionally, the banking crisis that took the world by storm in March has reared its head once more.
Shares in PacWest Bancorp (NASDAQ: PACW) are down more than 50% in after-hours trade after Bloomberg reported the bank is weighing its options, including a sale, following the collapse of rival lenders. That may have made gold and silver more attractive to risk-averse investors, as it did earlier this year.
The going rate of silver hit a 12-month high of US$26.16 an ounce overnight, according to CNBC. It's a similar story for gold, which is nearing its April high, peaking at around US$2,085 an ounce.
Of course, that's good news for the unit price of the three ASX ETFs and those invested in them.
