Strong gains were seen across global stock markets this week which further helped to improve investors’ attitude towards riskier assets such as commodities. The dollar fell against an index of currencies despite making good gains against the Japanese yen, while bond yields in Southern Europe fell as investors continue to chase yields in a world of diminishing returns and low volatility.
Both of the major indices as seen below recorded strong gains during the week ending November 21 (due to the US Thanksgiving holiday), especially the energy heavy S&P GSCI which notched up a two percent return due to strong gains across the energy complex, especially natural gas which continues to be bought as winter demand increases. Agriculture was the second best performing sector with strong gains seen in sugar and live cattle. Precious metals also notched up some gains led by palladium and silver while gold continue to consolidate within a confined range.