23 October 2023
The Bloomberg Commodity index rose for the fourth consecutive week, influenced by concerns over the Israel-Hamas conflict potentially escalating and impacting crude oil and natural gas supplies to Europe. Deteriorating crop conditions in the Southern Hemisphere boosted the agriculture sector. Additionally, the spike in US bond yields has driven investors towards the Swiss Franc and gold. Gold’s significant $160 increase over the past two weeks underscores growing apprehensions about geopolitical events, US fiscal policy, and whether the recent jump in both real and nominal yields will break ‘something.’