Dovish US data support commodity prices

Commodity prices have generally had a good week, helped by further soft economic data from theUS and a renewed decline in the value of the dollar against other major currencies. Thestabilisation in global bond markets after a sharp sell-off also helped risk appetite. Silveroutperformed gold, as is usual when both are rallying. US wheat and lumber also both postedsizeable gains on the week, although these have to be seen in the context of much larger falls earlierin 2015. Oil prices continued to consolidate (in the mid-$60s for a barrel of Brent) as the prospect ofdeclining US output in the coming months was balanced by expectations of a partial recovery inshale production later in the year.