What to Watch in Commodities: Winners and Losers in Second Half
- Crude outlook hinges on post-lockdown demand, OPEC+ discipline
- Copper favored to rally, gold sentiment mixed, iron risks drop
With the second half starting this week, investors are weighing up the outlook for commodities over the balance of the year and trying to sift winners from losers as the coronavirus pandemic rips through the global economy. Following a recovery from lows seen in March and April, What to Watch runs a slide rule over oil, copper, iron ore, gold and others to assess prospects. The mixed picture that emerges suggests being selective is key.
As the coronavirus case count now tops 10 million, the deadliest pandemic of the modern era is stronger than ever. The half to come will be marked by the battle for the White House between Donald Trump and Joe Biden, as well as central bank action. China’s trajectory will be critical, with the International Monetary Fund now seeing 1% growth over 2020. As trade got underway on Monday iron ore slumped with crude, while gold and copper pushed higher.