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.

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