Gains in commodities were seen across the board in the last week but don’t be fooled by this as underlying concerns about global economic growth persist and are likely to continue to have an impact on most components of the index.

The washout in recent weeks across markets has created investment opportunities throughout all asset classes and commodities are no exception. The CRB Jeffries Index is 4.5 percent higher in the week led by coffee (8 percent), which is closely followed by cotton then corn, crude and wheat with gains ranging from about 5-6 percent. Natural Gas was the lagger in the week mainly due to weather conditions and gold has also been treading water after its recent rally to just below $1,800. The impact of lower growth concerns has led investors into gold, considered a safe haven. Despite some “treading of water” in the last week the momentum is still for more appreciation in gold but investors should possibly be wary of a possible correction ahead. For grains, demand still remains strong spurred on by the effects of reduced U.S. output due to weather conditions.

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Source: www.tradingfloor.com