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Gold, Oil Help Commodities Have Strongest Quarter Since 2010

June 30, 2016 at 17:48 by Andrew Moran

The Brexit aftermath is not affecting commodity investors’ jubilation after experiencing the best three months in more than five years.

The surge in the price of gold, oil, and sugar has helped commodities have their strongest quarter since 2010. Commodity prices soared in the second quarter because investors had increased their appetites for commodities and supplies tightened up across many sectors.

Crude oil was one of the biggest contributors to the gains in commodity prices. Crude oil rose 23% in the three-month period, and even hit $50 a barrel for the first time since July 2015.

August crude oil futures declined $1.14, or 2.29%, to $48.74 per barrel at 17:18 GMT on Thursday.

Gold has been one of the other major performers in the commodities market. In the second quarter, the yellow metal rose 7% and recently reached a two-year high. Gold skyrocketed in June after the Brexit result and the Federal Reserve not raising interest rates. This prompted investors to seek out a safe haven asset.

August gold futures dipped $5.52, or 0.42%, to $1,318.38 during Thursday’s trading session.

Silver also modestly contributed to the rise in commodity prices. Silver jumped nearly 4% in the second quarter. September silver futures spiked $0.17, or 0.91%, to $18.53 an ounce on Thursday.

Although it has not garnered business headlines like gold and oil have, the sugar market has been steadily climbing as of late. Raw sugar futures soared 40% in the second quarter, which is the best quarterly performance in six years. The gains in sugar are due to a massive shift into a global deficit after years of surpluses.

Sugar futures settled Thursday at 20.82 cents, the highest finish since October 2012.

When looking at the industrial metals, zinc put forward the best performance. Zinc climbed 15% in the second quarter. Year-to-date, zinc prices have gone up 30% to just under $0.93 per pound.

Live cattle, soybean oil, and wheat were the only losers in the second quarter.

This comes as commodities completed 2015 with their biggest annual loss since 2008.

If you have any questions and comments on the commodities today, use the form below to reply.

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