Commodity markets are showing significant upward traction in prices under the lead of crude oil. Gold and select base metals, too, are rising. Obviously, some optimism is beginning to pervade; but what’s the basis?
The hope of finding a vaccine against the deadly coronavirus is rising. Many countries, especially in Europe, are beginning to lift lockdowns hoping that economic activities will begin to revive. All this translates to a slow return of risk appetite.
So, is this the beginning of a sustained increase in prices after the collapse in recent months or is it some kind of a false dawn? The jury is still out.
