The nine-week, gold-led rally in the precious metals faltered this week. We had warned that gold was looking a bit expensive, and that prices were vulnerable to a slight correction. While real bond yields edged up in recent days, we still think that they will resume their decline before long, which should allow precious metals prices to start pushing higher again. Despite a modestly bullish US stocks report on Wednesday, oil prices barely moved on the week. Instead, it was agricultural commodities that saw the largest price rises, with lumber performing particularly strongly amid a surge in homebuilding and DIY-related demand in the US. That said, a recovery in supply should prevent further price gains in the coming months.
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