No reprieve in sight

There was no respite for commodities prices this week. Industrial commodities took their cues from the downbeat China activity data which fuelled concerns about demand. At the same time, a stronger dollar, on the back of a deepening crisis in Turkey and fears of contagion to other emerging markets, weighed on precious metals prices. Turning to next week, all eyes will be on US-China trade developments. Chinese negotiators will arrive in Washington on Tuesday to restart trade talks with the US but we think that the discussions are unlikely to amount to much, which should keep commodities prices under pressure.