Commodities prices hit a seven-month high in a broad rally yesterday, bolstered by weakness of the US dollar, signs of better economic conditions and expectations of a pick-up in inflation.
The S&P GSCI spot commodities index, the asset class benchmark, jumped 2.1 per cent to its highest level since November. The index is up almost 30 per cent this year.
Commodities from oil to soya beans to coffee all hit highs for the past few months, with copper and wheat leading the way with gains of more than 5 per cent on the day. Investor bets on rising commodities prices are now at the highest since July 2008, according to data from the US Commodities Futures Trading Commission.