Commodities see gains in second quarter

Commodities see gains in second quarter

For the third consecutive year, the second quarter has seen noteworthy gains in commodities, with the Bloomberg Commodity Index climbing away from the 17-year lows seen in January 2016.


Saxo Group head of commodity strategy Ole Hansen noted that “strong comebacks” from oil and natural gas helped push a rally in commodities, something further supported by continuing demand for precious metals.

“The strong rally across most commodities attracted renewed demand from hedge funds that more than doubled bullish bets across 20 major commodities to around 1.5 million lots, a two-year high,” he said.

Gold and silver attracted increased interest in particular, and Mr Hansen added that much of this was driven by investors looking for diversification as well as by the recent Brexit vote, which helped drive gold prices up.

“We have maintained a positive view on gold throughout and with the latest developments we have raised our end-of-year forecast to US$1,350 an ounce,” Mr Hansen added.

Mr Hansen pointed out, however, that not all metals followed this trend, noting that “growth-dependent metals such as copper and palladium struggled” as China’s continued growth was met with uncertainty.

All the gains commodities have seen in the past year have been within the second quarter, Mr Hansen added.

Read more:

Bennelong Funds Management adds to board

UK headed for 'shallow recession': NAB

Responsible investment reaches $633.2bn

Bank remuneration review announced

Large caps set to disappoint, warns Zenith

 

Commodities see gains in second quarter
investordaily image
ID logo
promoted stories

Appointments

investordaily image

AMP names incoming chief risk officer

Jessica Yun

investordaily image

Antares Equities hires new director

Staff Reporter

Brad Fox

Former AFA CEO appointed to boutique board

Staff Reporter

Analysis

investordaily image

Warning lights flashing on Aussie equities

Roy Maslen

investordaily image

What’s in store for the economy in 2018?

Frank Uhlenbruch

ST Wong

Busting common passive investing myths

ST Wong