Commodity Update – May 9, 2022

Commodities ended the week unchanged in the aggregate. While most commodities saw five day losses, gas and oil prevented an overall loss. Gold was shockingly unaffected by Wednesday’s FOMC meeting where the Federal Reserve announced a 50bps hike. With inflation at unsustainable levels, and global uncertainty high some are beginning to see gold as undervalued. Lumber had the largest five day loss as mortgage rates continued to rise last week. Natural gas had the largest five day gain at around 10.5%. Commodities with a positive monthly return held steady over the last week. A little under 50% of commodities achieved this. We have seen this proportion drop as we continue to get further away from the spike in commodities prompted by the invasion of Ukraine.

The continued rise in the energy sector has pushed the overarching index out of first place in terms of risk adjusted returns. It is also noteworthy to mention the fall in risk adjusted returns by every other commodity class. 

Sign Up for a Free Trial