Commodities moved downward modestly last week as USD strength weighed on the value of raw materials. Energy sector commodities gained due to rumors that OPEC+ is set to reduce oil production next week. Nickel suffered the most significant losses last week, down nearly 10% on news that Indonesia’s production has surged 41% year-over-year.
Gold, in dollar terms, fell to a two-year low as the USD marched forward to a twenty-year high. While gold has failed to be an inflation hedge in the US, it succeeded in protecting foreign investors from currency devaluation.
The proportion of commodities with a positive monthly return has fallen throughout the week to 19.35%.
Risk-adjusted returns for commodities fell throughout last week.