In the latest issue of Commodities Monthly, SEB’s experts say that gold is likely to shine yet brighter as the eurozone debt situation continues to intensify and debt laden OECD governments are forced to launch monetary rather than fiscal stimulus in order to counter flagging growth.
However, broad based commodity indices are going to struggle as leading indicators point to further weakening in global growth while individual commodity performance is going to be more divergent with commodities in tight supply fairing the best while others will remain in harms way.