Keep your eyes on commodity prices as June approaches

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Fundamental analysis of commodity markets

Traders are pumping more money into commodities right now than at any time in the past decade, to capitalize on the four biggest and most explosive macro themes driving the Commodity Supercycle of Rapidly Surgical InflationThe global energy shock, the electric vehicle revolution and the global food crisis.

One of the dominant themes of the current commodity supercycle that needs no introduction is the global energy shock. This captured global attention and positioned the energy sector as one of the hottest asset classes of 2022.

It is impossible to talk about the energy sector without mentioning Natural gaswhich is on an absolute tear right now and breaking new records almost daily.

This week, natural gas prices once again reached all-time highs. The price of natural gas has now tripled since January – from just under $3.50 to a current high of $9.45 – registering a whopping gain of more than 169% so far this year.

The dramatic price surge has prompted traders to make more bullish calls for prices to rise again this year and hit new highs of $15-$18 by March 2023.

As traders well know, natural gas prices are one of the main indicators of inflation. In addition to heating and cooling, natural gas prices factor into the cost of producing everything the world needs and heavily depends on; electricity, fertilizers, agricultural products to major industrial metals such as aluminum, CopperSteel, Nickel, Lithium, Palladium and Uranium, to name a few.

Historically, when a predominant sector of the global economy such as natural gas or crude oil prices soar, they almost inevitably drag the rest of the commodity complex down with them!

So far this year, a total of 27 products ranging from metalsEnergies to Commodities have seen astronomical double to triple digit gains, already in the first 5 months of 2022.

And that’s only the beginning!

To quote Goldman Sachs, “they’ve never seen commodity markets this bullish before.”

Commodity Price Prediction Video for 27.05.22

Where do the prices go next? Watch The Commodity Report now, for my latest price forecasts and predictions:

For an overview of all of today’s economic events, check out our economic calendar.

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