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By Opalesque:

While gold has dominated commodity performance over the past three years with an 83% gain, Auspice Capital, a Canadian quantitative investment manager, sees signs of rotation beginning, with momentum building in metals such as platinum, silver, and aluminium, as well as agricultural markets.

Gold's dominance and emerging rotation

Gold has significantly outperformed the broader commodity market over the past three years, rising 83% while major commodity benchmarks (GSCI TR (about 3.4% YTD) and BCOM TR (about 4.4% YTD)) remained flat. This mirrors the early 2020s pattern when gold rallied first, followed by broader commodity gains during the subsequent inflation wave, Auspice said in a recent blog.

However, signs of rotation are now emerging. Over the past two months, gold has traded sideways while momentum builds in other sectors, particularly metals such as platinum, silver, and aluminium. Agricultural markets, including canola and soybean oil, are also showing strength. Auspice has added more long positions recently than at any time since summer 2020.

Historical context and market dynamics

The current setup echoes 2020, when gold captured early inflows in Q1 before the rally broadened to energy, metals, and agriculture by Q3. While the backdrop differs today, significant similarities exist in terms......................

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