Phil Carr
The Gold & Silver Club
Commodities have made an impressive start to 2022 – notching up double digit gains already within the first three weeks of the year, as the sector-wide supercycle continues to gathers momentum.
Last week, Aluminium, Copper and Lithium prices took centre-stage skyrocketing to multi-year highs. Meanwhile, Nickel prices surged to a decade high. Elsewhere, Crude Oil soared above $86 a barrel – tallying up a gain of over 15%, since the start of this year.
The bullish momentum also split over into the precious metals with Gold prices hitting a two-month high. Meanwhile, Silver prices touched $24.60 an ounce – posting their best weekly performance since May 2021.
There are plenty of reasons why commodities are on the move, these include; rapidly surging global inflation, tightening supply vs soaring demand, logistical bottlenecks to ever growing supply chain issues – all combined with a very disruptive economic recovery from the pandemic that shows no signs of fading anytime soon.
The previous two supercycles took place in the 1970s and the 2000s. In both cases, the commodities sector resembled the identical tell-tale signs, as it’s displaying again right now.
All in all, the evidence is mounting that a new commodity supercycle is underway. It goes without saying, that commodities are definitely one of the hottest and most exciting asset classes to watch in 2022.
Looking ahead, the major market-moving events that traders will not want to miss out on include; The Federal Reserve's monetary policy meeting, U.S Q4 GDP figures and PCE Inflation data, which always has the potential to move the markets.
Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:
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