Milton Financials: Commodities reach two year high on speculation of central bank stimulus.

Oct. 6, 2010 - PRLog -- Fueled by speculation that central banks around the world will join the Bank of Japan in increasing its purchase of government debt in order to boost economic recovery, commodity prices earlier touched two year highs, market analysts told Milton Financials.

The S&P’s GSCI Index of 24 raw materials climbed as much as 0.6% to its highest level since early October 2008 while the UBS Bloomberg Constant Maturity Commodity Index reached its highest level since August 29, 2008.

Gold Futures continued their recent rally, rising to a new record of $1,351 an ounce and was tracked by silver futures which reached a 30-year high. Milton Financials data shows that crude oil settled back to around its earlier levels after gaining 0.6%, pushing it to its highest level since May 4.


The Japanese central bank’s unexpected recent decision to drop its interest rate to “virtually zero” and to expand its balance sheet follows the U.S. Federal Reserve’s move toward more unconventional easing. Milton Financials sources report that Bank of England officials are also considering further economic stimulus packages, while the central banks of Australia, Canada and New Zealand are among those currently opting to delay now further interest-rate increases.

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