Commodities Soar on Positive Result of EU Summit
Commodities rallied today, demonstrating the biggest jump in several months, as the European summit has brought some positive results. Leaders of European nations made several important steps like easing loan terms for Spanish banks and giving direct access for banks to the bailout fund (and reducing debt burden on governments as a result). The outcome of the summit gave hope that the eurozone may yet emerge from the crisis and that optimism drove commodities to the upside.
Traders were very skeptical about the meeting and the positive result of the summit was a total surprise, leading to euphoria on markets. The Standard & Poor’s GSCI Spot Index of 24 commodities jumped as much as 5.6 percent, showing the biggest advance since April 2, 2009. The Dow Jones Industrial Average added 2.2 percent and the S&P 500 Index gained 2.5 percent.
Brent crude jumped from $92.06 to close at $97.57 per barrel today on ICE. Gold surged from $1,562.60 to $1,593.80 per ounce on COMEX. Copper climbed from $3.3370 to the closing price of $3.4920 per pound.
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