Our forecast that global economic growth will stay lower for longer suggests that the recent revival in industrial metals prices will prove short-lived. However, the prices of gold and silver could benefit from the weak macro-economic backdrop. That said, by 2020, we expect the Fed to be firmly in easing mode and for this to prompt a general pick-up in risk appetite, which is likely to boost the prices of industrial commodities. What’s more, a US-led cyclical recovery in 2021 should provide further fuel to prices.
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