“Commodity prices have been the most successful group of assets in the financial markets in recent months. The Bloomberg Commodity Index has already strengthened by 30 percent this year, “XTB analyst Jiří Tyleček told ČTK.
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Already last year, according to him, raw materials reacted positively to economic growth, which was supported by the fiscal policy of governments and the monetary policy of central banks.
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“Problems in supply and demand chains have also contributed to growth. The rise in prices since the beginning of the year is mainly due to the Russian aggression in Ukraine, “added the analyst.
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According to Tyleček, the rise is mainly driven by agricultural commodities, led by grain, of which Russia and Ukraine are important producers and exporters.
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However, due to sanctions and the tense geopolitical situation, the market also lacks industrial commodities and energy, he said.
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Tyleček reminded that the price of North Sea oil Brent has strengthened by 30 percent this year, and the US oil WTI is similar. He pointed out that there is also turbulence in the European gas market.
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“Although it has risen by almost half since the beginning of the year, shortly after the Russian attack on Ukraine, the price rose by more than 250 percent,” he said. Corn and wheat add nearly 40 percent, he added.
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On the contrary, according to Tyleček, it is not very easy to find commodities whose prices are falling this year.
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“Thanks to a significant price increase last year, the price of wood has fallen in recent months, and so is Arabica coffee. It added 62 percent last year and has been losing eight percent since the beginning of the year, “said Tyleček.
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From the beginning of the year to the end of April, the price of gold rose by 4.6 percent to 1,915 US dollars (about 44,700 crowns) per troy ounce.
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In March, in connection with the conflict in Ukraine, gold attacked the $ 2,050 mark, which was the highest since July 2020.
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“The reason for the subsequent decline in most commodities, including gold, was the decline of the first shock of the war,” said Golden Gate CZ analyst Pavel Ryba.
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Silver experienced a slight increase of less than one percent to 23.5 dollars (about 550 crowns) per ounce.
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The metal also reached its peak this year after the invasion of Ukraine in early March, when it cost more than $ 26. The price of platinum has fallen 3.6 percent since the beginning of the year to $ 930.
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On the contrary, palladium, whose reserves are largely located in sanctioned Russia, strengthened by a fifth to $ 2,275, according to data from Golden Gaza CZ.
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“In March, due to the conflict in Ukraine, commodities rose sharply. April was therefore a month of partial correction of this increase. At the end of the month, some commodities are falling, also given the possible faster rate of rate increases by the US Federal Reserve, which will probably take place in early May, “Ryba concluded.
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