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Commodity weekly: Copper takes over from gold; crude’s risk premium deflates

From home.saxo

The Bloomberg Commodity Index (BCOM) traded flat for a second week, but still near a six-month high, with support primarily being provided by continued strength across the metal sector, both precious and increasingly also industrial metals. Offsetting these gains was a second week of selling across the energy sector as traders struggled to quantify the appropriate level of risk premium needed to reflect the current geopolitical risks. The agriculture sector continues to see a strong divide between an ample supplied grains sector and a softs sector seeing record cocoa and recently also surging coffee prices amid fears ... (full story)

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  • Category: Fundamental Analysis