A Major Boom In Commodities Is Coming – What’s Next For Prices?
Infrastructure spending is beginning to emerge as one of the major themes of the post-COVID-19 economic recovery.
The International Monetary Fund recently urged governments around the world to seize a low interest rate opportunity to invest in infrastructure to drive recovery from the coronavirus pandemic and a shift toward greener energy.
Your capital is at risk
While China and the Middle East have announced billions of dollars in investment into mega infrastructure projects this year – it’s the U.S that has pledged to take the boldest step yet.
Earlier this month, President Joe Biden unveiled his ambitious $2.3 trillion Green Energy and Infrastructure spending plan, to transform the U.S. economy.
Similar to the $1.9 trillion stimulus plan signed only a few weeks ago – Biden’s new package will involve pumping hundreds of billions of dollars into improving the nation’s aging roads, bridges, schools, railways, waterways, airports and cellular network.
Biden’s massive Green Energy and Infrastructure spending plan, ultimately means that the U.S is going to need commodities – and lots of them.
Specifically industrial metals including: Copper, Palladium, Platinum, Silver, Lithium, Nickel and rare earth metals for batteries and 5G technology.
However, supply is limited, which is yet another indication that we could be on verge of a new supercycle in commodities as demand outstrips supply this year.
Looking ahead to this week, the key events that traders will be watching closely for clues on the markets next big move include; the March Inflation Report, Federal Reserve Chair Jerome Powell’s speech at the Economic Club of Washington, U.S. jobless claims and U.S first quarter earnings reports.
Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:
For a look at all of today’s economic events, check out our economic calendar.