With a few exceptions, the prices of industrial commodities have taken another hit this week, pressured by profit taking and renewed strength in the US dollar. Meanwhile, the ECB’s decision to keep interest rates on hold on Thursday weighed on the prices of gold and silver. However, President Draghi reiterated that the Bank is ready to act and we believe it will step up the pace of asset purchases and possibly cut interest rates at its next policy meeting in September. Oil prices also declined after a rise in US gasoline inventories pushed product stocks to a record high, fuelling further concerns about a glut of products.
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