Commodities are a bit of an oddity in that they generally have low correlation to stocks, bonds, and currencies. The latter — currencies — has arguably the strongest relationship with commodities. Over the past couple of years, commodities have been the worst-performing asset class, while the U.S. dollar has been hitting all-time highs.
But that’s not the only relationship they share. Countries that rely heavily on commodity-based exports such as oil or precious metals have a currency that is tied to the price of the underlying commodity...............................................Full Article: Source
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