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Analysts at TD Securities point out that last week it was another week of oil supply concerns and US inventory declines worked in tandem with a slumping USD and less EM angst to send the commodity complex soaring.

Key Quotes

“Base metals outperformed as risk appetite returned and a weaker USD.”

“Pending large spare capacity declines amid the tightening sanctions against Iranian supply, along with dropping US inventories and macro conditions drove Brent north of $80/bbl, with more upside on the way for key benchmarks.”

“A deflating USD index and the risk that the Fed may revise the long term dots lower on Wednesday helped gold to trade above $1,200 for most of the week, with growing risks of a short-covering rally on the horizon.”