| Commodity prices have a major bearing on inflation, global monetary policy and GDP growth; hence, it is essential to understand important turning points and trend reversals. Some blame the current correction in commodities on algorithmic trading and others on Chinese monetary tightening.
A narrow focus on every tweak in China's monetary policy risks missing the bigger picture. Demand has indeed weakened in China to the point where its imports of key commodities are dwindling. It is further evidence of demand destruction globally resulting from an earlier surge in commodity prices, led by commodity-in-chief , oil..............................................Full Article: Source
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