September 28, 2012

Week In Review: Silver Surges 25% To Take Top Spot In Q3; Wheat & NatGas Follow With Strong Gains

Details

We examine the latest developments in commodity markets and the week’s, and for today, the quarter’s performance.

Commodities surged across the board this quarter. Though economic news flow was largely negative in the period—growth remained weak in the U.S., Europe and China—central bank stimulus efforts gave traders hope that the pace of economic expansion will pick up going forward.

Stocks, as measured by the S&P 500, rose by almost 6 percent in the quarter, taking their year-to-date gain to 14.8 percent.

Macroeconomic Highlights
For the quarter, the biggest macro events were the resumption of the European Central Bank’s bond-buying program and the launching of the Federal Reserve’s third round of quantitative easing (“QE unlimited”).

For the week, U.S. data was mixed. Durable goods orders plummeted 13.2 percent in August. Excluding the volatile transportation sector, orders still fell by 1.6 percent.

On the positive side, the Case-Shiller home price index grew by 1.2 percent year-over-year in July, up from the prior month's 0.59 percent. That's the second-straight month of year-over-year gains, and suggests that the housing market may be turning the corner.

Finally, personal spending in the U.S. rose by 0.5 percent in August, matching expectations. Personal income in the month rose by 0.1 percent, slightly below the 0.2 percent that was anticipated.

Commodity Wrap