We expect most commodity prices to struggle this year against a backdrop of a stronger dollar and deteriorating investor risk appetite. Energy-related commodities will be the exception. We expect prices to tick up later in the year owing to greater seasonal demand and supply constraints. In 2024, the outlook should be brighter. We expect many prices to pick up as the US Fed’s rate-cutting cycle gets into full swing, global economic growth normalises, the US dollar depreciates and risk appetite improves. Again though, we suspect energy prices will buck this trend, and prices should fall as the supply picture improves.
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