Written by Sumit Roy  |

January 11, 2013

Week In Review: Gold & Silver See Volatility, WTI Hits 4-Month High, Grains & Platinum Jump

Details

We examine the latest developments in commodity markets.

Most commodities rose this week on hopes that the recovery in Asia may be picking up steam. Stocks, as measured by the S&P 500, edged up fractionally to trade at the highest levels since December 2007.

Macroeconomic Highlights

In this week’s news, Chinese exports rose by 14.1 percent year-over-year in December, above the 5 percent that was expected and the fastest rate in seven months. Imports rose by 6 percent in the month, the fastest rate in six months.

The acceleration in China’s growth has led to a pickup in inflation. The consumer price index for December rose by 2.5 percent year-over-year, the fastest rate in seven months. That somewhat dampens expectations of additional stimulus by the Chinese government.

Meanwhile in Europe, the ECB held its benchmark overnight interest rate steady at 0.75 percent, as expected. ECB President Mario Draghi said that economic weakness in the eurozone is likely to extend into 2013, but that the economy should gradually recover later in 2013.

Looking forward, investors will closely follow various corporate earnings reports for hints on the status of the global economy. The fourth-quarter earnings season kicked off on Tuesday.

Commodity Wrap