With recent data weakening the case for an immediate increase in rates, markets have sharply pared expectations for near-term tightening, with a hike no longer fully priced before early 2027.3 This moderation in rate-hike fears has been supportive for gold.
Gold reached a fresh all-time high in April, continuing its strong upward trajectory over the past six months.
While many group commodities as one asset class, in reality each commodity trades on its own fundamentals. Historic correlation between commodities has been relatively low. In this outlook we will provide an overview of our views on major commodities within each sub-category.
Individual commodities trade on their own fundamentals. Near-term pressure on gold and silver to give way as inflation rises faster than interest rates. Oil to continue range bound trading in first half until visible signs of production cut-backs emerge...
