Most commodities prices rose last week amid improved investor sentiment over financial markets and economic conditions.

Rising equity values around the world boosted investor confidence last week, supporting the view that the global economic recovery is likely to continue. Investors also moved into commodities, although the buying was tempered.

While most commodities prices were up last week, they were still off from the levels seen in March and April, when investors were just beginning to increase their attention on euro zone sovereign debt problems. Gold and silver prices, however, are up from the levels seen during those two months.

Equity markets have recovered and investor confidence has improved, but most investors continue to increase their holdings of safe haven assets.

This cautiously optimist trend may continue in the near term and should benefit both gold and silver. Crude oil meanwhile is likely to remain exposed to swings in market sentiment although fundamentals are exerting increased influence on prices.

Recent price gains for gold, silver, and oil will be vulnerable to profit-taking, although strong declines may not occur and prices are likely to hold at higher levels than seen two weeks ago.

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