The Goldman Sachs commodities index (GSCI) closed just over 1% higher at 675.03 last Friday, on the back of several factors, such as generally positive economic data and a bullish speech from US Federal Reserve President Ben S.Bernanke at the Jackson Hole Symposium. That ahead of the extended Memorial Day weekend, which may also have contributed to moves in the markets.

Precious metals were strongest with December gold futures staging a 2.14% rise to the 1,693 dollar per ounce mark on COMEX, while silver futures gained by just over 3%. Some agricultural futures such as those for corn and wheat fell back however.

West Texas Intermediate crude futures increased by 2.05% to the 96.52 dollar per barrel mark on the NYMEX. Contributing to gains in the oil complex, the Bureau of Safety and Environmental Enforcement reported about 1.31m barrels a day of US Gulf oil output remained halted. It was the third consecutive day the government agency reported a 95% shut-in rate.

Possibly further pressuring oil higher, some refineries in Louisiana began to resume production (hence increasing the demand for oil production which is still shut-in). As an example of the above, Marathon Oil went as far as borrowing 1m barrels from the Strategic Oil Reserve.

Seventeen of 29 analysts, or 59%, forecast prices will decrease through Sept. 7, according to a Bloomberg survey.

Acting as a backdrop, the US Dollar Index dropped 0.59% to the 81.20 point mark, near a 1 month low.

AB

Related share prices