Commodities spring back

The prices of most commodities rose this week, helped by a depreciation of the US dollar and a revival in global equity prices. Industrial metals, in particular, posted some large gains, although volumes were thin late in the week as the Chinese New Year holiday began in earnest. The week-long holiday in China and the US holiday on Monday could mean that markets are fairly quiet next week, with prices taking their lead from the US dollar and other asset classes. The minutes of the FOMC’s January meeting are set to be released on Wednesday and are likely to bolster expectations of a March rate hike. That said, it is pretty much already priced into markets and is unlikely to cause big moves in commodity prices.