Key commodity prices set for further gains

Followers of our relatively upbeat research since January may not be surprised to hear that we expect many commodity prices to rally further. (See our quarterly Commodities Analyst, “Oil to lead a broadbased recovery”, published on 1st February, and our Commodities Update, “Prices of industrial commodities may finally be bottoming out”, 24^th February.) Admittedly, the foundations of the recent recovery still look a little shaky and some temporary pull-backs may be inevitable. But the conditions for additional gains over the remainder of this year and next are gradually falling into place.