Commodity prices are booming across the board with everything from the metals, energy to agriculture markets, trading near multi-year highs.
Last week, Palladium, Iron Ore and Lumber prices took centre-stage skyrocketing to all-time record highs. Meanwhile, Copper and Aluminium prices hit 10-year highs. Both metals have now doubled from the lows seen a year ago.
There are plenty of fundamental factors why commodities are on the move, but the key driver is a vaccine-led recovery fuelled by massive amounts of global stimulus into Green Energy and Infrastructure projects. This is against a backdrop of tightening supply across many high-in-demand commodities, which firmly suggests that a new supercycle is now underway.
Interestingly, this year many commodities have already exceeded the highs of the previous supercycle seen during the early 2000s – And this is just the beginning!
Looking ahead to this week, the key macro events that traders will be watching closely for clues on the markets next big move include; ISM Manufacturing PMI, ADP Employment Change and Jobless Claims as well as the biggest event of the week – Non-Farm Payrolls data on Friday.
Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:
Trading has large potential rewards, but also large potential risk and may not be suitable for all investors. The value of your investments and income may go down as well as up. You should not speculate with capital that you cannot afford to lose. Ensure you fully understand the risks and seek independent advice if necessary.