|

Commodity supercycle set for new highs as inflation runs hot – What’s next? [Video]

With global inflation surging at the fastest pace in three decades, it's no surprise that Commodities have firmly positioned themselves as one of the best performing asset classes of 2021 – with everything from the metals, energies to agriculture markets hitting new record highs almost weekly.

There are plenty of reasons why Commodities are on the move from rapidly surging global inflation, tightening supply, logistical bottlenecks to booming demand across many highly essential Commodities as world economies recover from the COVID-19 pandemic.

So far this year, a long-list of Commodities have already blasted through all-time record highs including Aluminium, Copper, Cotton, Coffee, Crude Oil, Natural Gas, Nickel, Lithium, Wheat and Uranium just to name a few.

In total 27 Commodities ranging from the metals, energies to soft commodities have tallied up double to triple digit gains, so far in 2021 and this is just the beginning.

Looking ahead, inflation will continue to drive the markets again this week. The biggest macro events that traders will not want to miss out on include; U.S CPI Inflation Data, Producer Price Index and Consumer Sentiment.

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:

Author

Phil Carr

Phil Carr

The Gold & Silver Club

Phil is the co-founder and Head of Trading at The Gold & Silver Club, an international Commodities Trading Firm specializing in Metals, Energies and Soft Commodities.

More from Phil Carr
Share:

Editor's Picks

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s  irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest 

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.