The combination of stronger growth but less stimulatory monetary policy in the US is more likely tobe a net positive for commodity prices – especially industrial metals – than for those of other assets.This should finally allow commodities to reverse some of their underperformance against equitiessince 2011, provided there are no further shocks from China. Geopolitical risks, including fromUkraine, may also add to the upward pressure on some commodity prices, notably gold. However,any crisis which pushes up the costs of energy and food and which undermines confidence in theglobal recovery could ultimately prove to be negative for commodity markets too.
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