Tag Archives: gold
Hot Temperatures and a Hot Start to the Second Half of 2023 for Commodities
The S&P GSCI, the broad commodities benchmark, started the second half of the year in a blistering heat wave and rose 11% on the back of petroleum commodities, which all increased by more than 14% in July. The remaining four sectors within the S&P GSCI also rose during the month, as fears of a recession…
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Hedging Debt Ceiling Drama with the S&P GSCI SOFR and S&P GSCI Gold
The debt ceiling debate in Washington appears to be nearing an end. According to the U.S. Treasury, Congress has “always acted when called upon” and markets will look for them to do so for the 79th time this month. By index rule, all commodities in the S&P GSCI are traded in U.S. dollars, so the…
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The S&P GSCI Cooled in April as Inflation Cooled
The S&P GSCI fell 0.8% in April as the Fed’s preferred measure of inflation, Personal Consumption Expenditures (PCE), fell slightly on a year-over-year basis to 4.6%. Continued elevated readings of inflation, albeit cooling, led to market expectations that the Fed would hike rates again in May to bring inflation back to its 2% target. Commodities…
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The “Devil’s Metal” Vanishes, Precious Metals Shine and Energy Dims: Commodities Quarterly Wrap
“Jamie ran on down to the LME, but the devil caught him there, He took Mr. Dimon’s Nickel bags and vanished in the air, Set out running but I’ll take my time, A friend of the devil is a friend of mine” -adaptation of Grateful Dead’s “Friend of the Devil” Just one year after the…
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Commodities Could Not Escape the Sea of Red Seen Across Asset Classes in February
The S&P GSCI, the world’s leading commodities benchmark, could not escape the volatile markets experienced in February, as the index fell 3.83% for the month. Despite recent declines, inflation remained high, which kept the U.S. Fed steadfast in its rate-hiking campaign, and expectations for a possible easing by year-end 2023 were squashed in the latest…
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Spotlight on Commodities: Inflation and Innovation
What could the convergence of inflation and interest rate tightening mean for commodities? CME Group’s Blu Putnam takes a fundamental look at global commodity markets with S&P DJI’s Jim Wiederhold and Kelsey Stokes.
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Will Diwali Light Up Demand for Gold in the Fourth Quarter?
During the Diwali festival in India, retail gold demand tends to pick up, offering a floor to global gold prices or the potential impetus to push prices seasonally higher. Several years of lower-than-expected gold demand suggest that there is room for an uptick in demand in Q4 2022 for India’s second-largest import by value. India…
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Commodities Take a Break over the Northern Hemisphere Summer
The S&P GSCI fell 2.7% in August; renewed strength in agricultural commodities and the continued rally in natural gas were not sufficient to overcome a late-month decline in oil prices. After eight months, the benchmark commodities index is 32% higher YTD, defying higher interest rates and growing fears of a prolonged global economic slowdown. The…
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Commodities Rise 36% in 2022 after a Flat July
The S&P GSCI remained flat in July, holding on to a 36% YTD gain despite the bearish sentiment permeating the broad financial markets. This benchmark for world commodities has proven its merit during extremely hot inflation. The Fed hiked interest rates another 75 bps to fight inflation late in the month, but several factors across…
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Reductions in Risk Caused Disparate Returns for Commodities in April
Another higher inflation reading helped the S&P GSCI, the broad commodities benchmark, to post an additional 5.1% gain in April. Many market participants realized the U.S. Fed may be behind the curve and have started allocating capital to commodities in 2022. Agriculture and energy continued to outperform last month, while metals and livestock underperformed. Among…
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