What happens to commodities when rates go up?

With iron ore futures dropping below $40 a tonne due to concerns about China, Copper dropping below its 200-day moving average for the first time since 2003 and BHP diving to a seven year low it’s pretty clear that investor sentiment towards commodities is dire. However, if you subscribe to the view that rate hikes are about to begin then you should check out this chart from ETF Securities that shows when rates go up – commodities, including gold and crude, tend to follow.


Livewire News brings you a wide range of financial insights with a focus on Global Macro, Fixed Income, Currencies and Commodities.

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.