Factbox: Wall Street and commodity risk - Goldman measure jumps in second quarter

The bank's daily average VaR indicator was $20 million in the second quarter, up from $16 million in the prior three months and $19 million a year earlier.

The VaR is a risk-reward indicator that measures the commodities exposure of Wall Street banks.

The news came as Goldman reported better-than-expected quarterly results.

Wall Street banks typically group commodities revenue under the fixed income category and do not break out the sector.

Goldman said second-quarter revenue from trading in fixed income, currency and commodities rose 20 percent to $1.93 billion for the second quarter due to significantly higher net revenues in currencies and credit products, as well as higher net revenues in interest rate products and commodities.

In the quarter, crude oil prices continued to recover, piercing $50 per barrel in June on hopes that output cuts by major producers would help erode the global glut, while gold soared to above $1,350 an ounce, its highest in more than two years, as speculators piled on bullish safe-haven bets.

While market-making conditions generally improved from the first quarter, the bank said the division continued to operate in a challenging environment characterized by low interest rates, political uncertainty and concerns about global growth.

Last week, JPMorgan Chase & Co reported its VaR was unchanged at $9 million in the second quarter compared with the first quarter and the year-earlier quarter.

Goldman rival Morgan Stanley will release its results on Wednesday.

(Reporting by Josephine Mason Editing by W Simon)