Expert opinion

Commodities Up Sharply in Q1. Can Trend Continue?

There was great debate about whether commodity prices have peaked for now or there is more room to run to the topside, they said.Solid China purchasing manager data, if coupled by upbeat readings in the U.S. for March non-farm payrolls and ISM manufacturing also Friday, would go a long way to support bullish commodity sentiment, they said.

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Gold is a Win/Win

World’s largest asset manager Blackrock warned about prices picking up due to “stabilizing oil prices and a tighter labor market… “. They recommend protecting against inflation through inflation-linked bonds and gold.

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Exerting control in a decidedly dovish direction

We maintain our view that the Fed will raise its policy rate twice this year, in June and December, but risks to our call remain skewed to fewer hikes, particularly if market concerns around the upcoming UK Referendum vote keep financial conditions tight through mid-year. Our policy rate forecast is predicated on our view that external risk factors will not unduly influence domestic activity, allowing for a continued decline in the unemployment rate and a gradual building of inflationary pressures.

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