Commodity prices show upward trend

There has been strong variation in the trends for commodity prices over the past three months. Prices for energy (oil, gas) fell steeply, while the prices for agricultural raw materials (wheat, coffee, corn) and metals (gold, aluminium, steel, iron ore) rose. Since March the combined commodity indices have fallen more significantly due to waning interest by investors and an expected interest rate hike by the Fed. The ABN AMRO bank forecasts that most commodity prices will maintain their upward trend in 2017. The short-term prices will be strongly influenced by any rise in interest rates by the Fed. If the Fed does raise the interest rate, the mood could worsen. Business activity in construction and manufacturing is picking up worldwide, and the robustness of the global economy also forms a good foundation, according to the bank.

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