Commodity Prices Set For Best Quarter On Record – What’s Next?

Commodity Markets Fundamental Analysis

When inflation accelerates at a red-hot pace, so does the prices of Commodities. That’s why it’s no surprise that Commodities are outperforming every other asset class and are firmly on track for their biggest price increase on record in over a century.

Data released last month showed that U.S Inflation is now running at its highest in a generation with Consumer Prices rocketing by a whopping 7.9% from a year ago – the biggest annual gain in over 40 years.

Accelerating Inflation is fuelling an unstoppable Commodity Supercycle sending everything from the metals, energies to agriculture markets rallying to new record highs.

So far this year, Oil prices have soared above $130 a barrel to hit their highest level in a decade. While Gold extended its parabolic rally from just under $1,800 an ounce to a high of $2,070 an ounce – just $5 short of an all-time high reached in August 2020.

The bullish momentum has also split over into other commodities with Aluminium, Copper, Lithium, Platinum, Palladium, Uranium, Zinc, Coffee, Wheat and Lumber prices blasting through all-time highs. While U.S Natural Gas prices have soared to a 13-year high and have now doubled since the start of the year.

In total 27 Commodities ranging from the metals, energies to soft commodities have tallied up astronomical gains so far this year… And this is just the beginning!

According to Goldman Sachs “we’re still only at the first inning of a multi-year, potentially decade-long Commodities Supercycle”.

Looking ahead, more big moves could be on the horizon this week as Inflation, once again takes centre stage. The biggest macro event that traders will not want to miss out on is U.S CPI Inflation data. The reading is expected to show a record gain of 8.4% in March, which would be the largest year-over-year jump in consumer inflation since the early 1980s.

Weekly Commodity Price Forecast Video 11 – 15 April 2022

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:

For a look at all of today’s economic events, check out our economic calendar.