Risk assets were expected to benefit from the liquidity unleashed first by the European Central Bank (ECB), which promised to buy distressed sovereign debt without any limits, and soon after by the US Federal Reserve, which said it will buy $40 billion in bonds without setting a date for this programme to end. Indeed, asset prices did move up as expected, but one asset class has stumbled.
Commodities have shed their initial gains seen since the first week of September, when ECB first announced its bond-buying plan. The Thomson Reuters/Jefferies CRB Index, a broad indicator of commodity prices, has fallen by 0.7% since then. That is in contrast to what’s visible in the equities space, where the MSCI Index for Asia ex-Japan is up by 7.7%, while the MSCI World Index is up by 4.4% since the first week of September. Gold prices have risen by 3.2% over the period………………………………………..Full Article: Source