Commodities Bull Run

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Commodities Bull Run

Commodities: Is The Bull Run Around The Corner?

According to experts, a multi-year (1-2 year) uptrend is just around the corner for the commodity market. Normally, a bull run in the Gold market is what eventually leads to a bullish trend in the commodities as well.

Gold Starts The Commodities Bull Run

So, in other words, experts are anticipating a bull run in the gold market, which will eventually translate into the commodities market.

The key factors for any bull run in the gold are governance and monetary factors. It all happens when people lose their confidence in the fiat currency, government, and the banking system in general.

This leads to an increased demand for Gold and other safe-haven assets. Since the supply of gold is essentially constant over a typical investment period, these bull markets have nothing to do with it.

However, one key driver for most other commodities except Gold is the supply. In fact, after monetary and governance factors initiate a general upward trend, the non-monetary commodities with the most severe supply constraints also tend to have the highest price increases.

quick look at the Gold shows that the bull run in the commodities is just around the corner. The US Dollar keeps getting weaker while the Gold is trading at historic highs.

In addition, the trade tariffs by the Trump administration have also strengthened the Gold's position. Similar to the COVID-19 lockdowns, supply chains have been and will continue to be disrupted by tariffs and the uncertainty surrounding future tariffs.

We anticipate that once it is evident enough that the US economy is in a recession, trigger fiscal and monetary policies intended to boost economic activity, a general upward trend in commodity prices will start.

This is expected to occur before the year ends, and it may occur within the next three months. So yes, the bull run for the commodities market is now just around the corner.

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