Brexit's commodity price impact won't last despite drag on investments

London

THE UK decision to quit the European Union probably sparked the country's biggest impact on global commodity markets in decades. It may not last.

While the surprise result of the June 23 referendum sent gold surging and oil plunging - and disrupted world stock, bond and currency markets - the UK hasn't mattered much to the commodity world in a long time. Back in the days of colonial empire, everything from tea to copper was priced in the British currency, the pound, making it a global benchmark. That's no longer the case. Today, almost every major commodity is sold in dollars.

The prospect of life outside the EU has weakened the pound and raised questions about the British economy for companies reconsidering whether to do business there, which could hurt trade with other countries. But that probably won't significantly alter the global supply and demand of raw materials, because the UK isn't a major buyer or producer. The country ranks 15th among the world's oil…