Dollar strength takes some steam out of prices

With a few exceptions, the prices of industrial commodities have taken another hit this week, pressured by profit taking and renewed strength in the US dollar. Meanwhile, the ECB’s decision to keep interest rates on hold on Thursday weighed on the prices of gold and silver. However, President Draghi reiterated that the Bank is ready to act and we believe it will step up the pace of asset purchases and possibly cut interest rates at its next policy meeting in September. Oil prices also declined after a rise in US gasoline inventories pushed product stocks to a record high, fuelling further concerns about a glut of products.