Adam Gault
TS Lombard indicated on Thursday that the overall commodity space may remain higher for an extended period of time as the global economy looks to be shifting gears towards a “sticker-for-longer” inflation stance.
“This commodity rally does not look like a head fake,” the investment institution stated. “Having spent much of the past year in a relatively tight trading range, the main commodity indices broke to the upside in 2024 Q1, led by broad gains in energy and (especially) metals.”
TS Lombard argued that it’s difficult to look past this rebound in commodity prices, specifically as fundamental tailwinds are strengthened by favorable capital flow considerations. Here are some comments the firm had about specific commodity markets:
Oil (CL1:COM)
- “Oil has been on an uptrend since mid-December against the backdrop of sustained OPEC+ supply cuts (aimed at putting a lid on global inventories and a floor under prices) and a raft of M&A activity in the US.”
- Oil Funds: (USO), (UCO), (DBO), (SCO), (OILK), and (USL).
Copper (HG1:COM)
- “Copper has led a breakout to the upside in the major base metal indices, despite the market for refined product looking relatively soft, particularly in China.”
- Copper Funds: (COPX), (CPER), and (OTC:JJCTF).
Gold (XAUUSD:CUR)
