Commodities climbed for an eighth day, heading for the longest winning run since 2010, after U.S. Federal Reserve Chairman Ben S. Bernanke said the economy will need accommodative monetary policy for the foreseeable future.
The Standard & Poor’s GSCI Index of 24 raw materials increased 0.5 percent to 647.36 by 2 p.m. Singapore time, the highest level since April 3. The daily gains were the longest streak since November 2010, according to data compiled by Bloomberg. Gold rose to the highest in more than two weeks and oil traded near levels not seen in 15 months.
Minutes of the Fed’s last meeting released yesterday showed many policy makers want to see more signs that employment is picking up before they’ll slow bond purchases. Bernanke said last month the central bank will begin trimming its $85 billion in monthly bond purchases if the economy continues to improve. Gold tumbled 22 percent this year, set for the biggest annual drop since 1981, as the GSCI gauge added 0.1 percent.
“The June FOMC Minutes were relatively dovish,” Australia & New Zealand Banking Group Ltd. analysts including Mark Pervan wrote in a note today. The result is a “sharp rally in gold,” they said. The MSCI Asia Pacific Index surged 2.3 percent as S&P 500 Index futures added 1.1 percent. The Dollar Index slumped 1.7 percent.
Gold for immediate delivery gained as much as 3.1 percent to $1,298.73 an ounce, the highest level since June 24, and was at $1,296.79. Silver surged 4.6 percent to $20.288 an ounce, the highest since June 20, while platinum rose 3.1 percent to $1,411.30 an ounce, also the highest since June 20.
West Texas intermediate oil for August delivery climbed 0.9 percent to $107.41 a barrel from $106.52 yesterday, the highest close since March 2012. Copper for delivery in three months in London rose 3.2 percent to $7,042.50 a metric ton.