Commodity prices rose again in April on a combination of persistent weakness in the US dollar and investor optimism about a recovery in Chinese demand. While our long-held view has been that industrial commodity prices, in particular, would recover this year, we are a little concerned about the scale of recent gains. Indeed, prices are starting to look vulnerable if, as we expect, the US economy bounces back after its relatively poor performance in Q1 and the Fed resumes hiking interest rates.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services