Commodity prices, which have been in free-fall globally since 2011, are seeing an upturn as performance this year moves closer to reversing last year’s losses.
Half of the 24 commodities in the S&P GSCI Total Return Index experienced positive net increases during February, with precious metals, other metals and certain foods all performing well.
Gold has been the best performing commodity in 2016 so far, rising by 15.1%. In February alone it rose by 9.3%. The increase is attributed to investors looking to insulate their portfolios from market volatility.
Overall, the S&P GSCI Precious Metals Index has risen by 8.7% during in the year so far, up until the end of February.
Zinc and sugar also performed well in February, rising by 8.1% and 7.2% respectively. All constituents of industrial metals gained this month due to tightening metal supply, bar nickel.
Overall, the commodities sector is positive for the year, with the S&P GSCI Non-Energy Total Return up 14 basis points.
S&P Dow Jones Indices, which provided the data, said the performance of commodities so far in 2016 has almost reversed the 20% loss recorded in 2015.
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