Analysts at TD Securities point out that last week it was another week of oil supply concerns and US inventory declines worked in tandem with a slumping USD and less EM angst to send the commodity complex soaring.
Key Quotes
“Base metals outperformed as risk appetite returned and a weaker USD.”
“Pending large spare capacity declines amid the tightening sanctions against Iranian supply, along with dropping US inventories and macro conditions drove Brent north of $80/bbl, with more upside on the way for key benchmarks.”
“A deflating USD index and the risk that the Fed may revise the long term dots lower on Wednesday helped gold to trade above $1,200 for most of the week, with growing risks of a short-covering rally on the horizon.”
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