At the start of a downswing in prices

Although the prices of industrial metals have picked up again recently, we still expect them to be falling over the next year or so. Underpinning this view are our forecasts for economic growth to slow in China, a continued rebound in supply from major producers, and a stronger US dollar. Meanwhile, we also think that most precious metals prices will decline, primarily because we expect US real yields to rise and weigh on investment demand.