Gold has been the standout performer over the last quarter, rallying nearly 20% since May, to over $1,500 per ounce. This is the highest level since 2013. The moves came as a result of falling real interest rates, making precious metals relatively more attractive, given their 0% yield. Gold has also benefitted from its safe haven status, particularly at a time of increased geopolitical tensions where currencies are increasingly becoming a policy tool.
Towards the end of the quarter oil prices spiked on the news that half of the Saudi oil production capacity was taken offline following a drone strike. The price of oil was relatively flat over three months to mid-September; however, it has ended around 10-15% higher. Nevertheless, for the time being, it remains within the trading range that it has been in for the last several years.
Iron ore prices have fallen dramatically since July, although this was from a position of strength. At $80/ton, Iron Ore remains at the upper end of where it has historically traded over the last 5 years, indicating that it may have further to fall. A series of disruptions to supply over the last 6 months had pushed prices higher, however, now that these are working their way out, prices are likely to normalise.