The prices of industrial and agricultural commodities were hit hard in May by the escalating crisis in the euro-zone and worries over demand from China (as we had anticipated). In particular, oil fell sharply as concerns about the global economy again trumped the supposed tightness of supply. One commodity to buck the trend was US natural gas, as the drag from the mild North American winter faded. Gold’s performance remains sluggish, but we still think the risks to the price of the precious metal are skewed to the upside.
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:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services