Crude oil, gold on the rise — for different reasons, though

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.