The prices of gold and silver are obvious beneficiaries of the increasing worries about US government debt. But other commodities have also held up rather better than might have been expected, encouraging some commentators to suggest that these prices are also benefitting from safe haven demand. Nonetheless, with the exception of precious metals, we still think that commodity prices will fall sharply in the event of an actual US downgrade or default.
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