What does Fed policy mean for commodities?

The muted reaction to the Fed’s announcement yesterday supports our view that the boost to commodity prices from exceptionally loose US monetary policy has now largely run its course. The monetary base could be inflated by another $1,000bn or more each year, which may yet provide a further lift to the prices of precious metals and especially gold. However, the upside for industrial commodities, notably oil and base metals, is limited by the fragility of the global economy.