The technicals and fundamentals are starting to align for a major correction in global markets. Terry Alexander, Head of Global Research at Business Monitor, joins Mark Schaltuper to discuss some of the key views on the markets.

 

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This week Mark Schaltuper is joined by Cedric Chehab, Head of Commodities Research at BMI, to discuss the outlook for the commodity complex. With macroeconomic headwinds in the making, how will cyclical commodities perform relative to grains and softs, and what are the risks of gold forming a bubble?

 

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One of the news stories drawing my attention today is a report in the New York Times suggesting that Afghanistan has almost US$1 trillion worth of mineral deposits. The article, citing US geologists, lists iron, copper, cobalt, gold, and lithium as existing in vast quantities in the country’s soil. Lithium in particular has been highlighted, [Read more...]

I have been telling my colleagues that a continued rise in risk aversion would likely see gold outperform equities and other commodities as cautious investors moved into safe haven assets such as gold, US Treasuries and German Bunds. This view has played out with gold holding up relatively well compared to cyclically driven commodities such [Read more...]

The short-term bounce in commodity prices has continued this week in line with firmer global equity markets and a slightly weaker US dollar. Greenback weakness has notably benefited precious metal prices, which are particularly sensitive to US dollar strength. My colleagues here at BMI see further upside potential for gold prices in the short term, [Read more...]

Precious metals have been hit particularly hard in recent trading and I see potential for further downside in the coming days, as I suggested recently. Weaker equity markets, a rise in risk aversion and a concomitant rise in the US dollar have weighed on commodities. Currently, daily momentum indicators are firmly into oversold territory and [Read more...]

In line with the view I have been promoting on Business Monitor Online, spot gold has continued to push higher in recent trading to hit a new high of US$1,095/oz at one point on Wednesday. I see potential for gold to head even higher in the short term as US dollar weakness, weaker equities, and [Read more...]