Turning a corner in 2020

While there appears to be little to lift spirits in the near term, we think the macro-economic backdrop for commodity markets will turn more positive during 2020. We expect global economic growth to pick up over the course of the year, which in turn will prompt a rise in investor risk appetite. Both developments should give a boost to commodities demand. Meanwhile, the supply of oil and many of the industrial metals is likely to remain constrained next year, adding to the upward pressure on prices. In contrast, we expect the price of gold to fall on the back of weaker demand for safe havens.