Commodities took a sharp turn lower in the first week of May, beginning with a silver price collapse from US$50/oz back below US$35/oz – a move in excess of 30%, driven by higher margin requirements and a spectacular unwind of speculative longs. Seeing this, BMI’s Commodities Team focused its attention on Brent crude, upon which… [Read more]

Although I remain bullish gold prices, and believe that it could bounce off support around US$1,300/oz, the dynamics that have been underpinning gold of late are starting to wane somewhat, which may pose downside risks to prices. First, the strengthening of the global economy, with the outlooks for the US and Germany improving significantly in… [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]

The outperformance of gold since the credit bubble burst and global liquidity collapsed has been staggering. Just how impressive gold’s performance has been can be seen in the chart below, which shows the ratio of spot gold to the overall commodities basket. As you can see, the price of gold in terms of everyday commodities… [Read more]