Shenzhen, China – July 27, 2018 – The rise in US commodity prices can be seen as a welcome indication that the economy is picking up. However, historical trends also suggest a need to be cautious, according to Avic Management, the global online trading broker based in Shenzhen, China.
Apart from oil, metals such as copper and aluminum have appreciated in the last few years. The last two have increased by more than thirty percent in the last two years. Appreciation points to the fact that there are more active buyers. However, commodity prices should be seen in the larger context of inflation and recession.
The latest US inflation rate is below three percent, but that need not continue to be the case. If the markets give mild returns this year, inflation rates will attract greater attention by investors. Hence appreciation in commodities could easily become a concern.
“Appreciation in commodity prices should be watched carefully, as it can become a cause of concern if markets produce low returns. A lot will depend on which direction inflation figures will go,” said a spokesperson for Avic Management.
Avic Management is the trusted source for advice and insight into investments, latest market trends and challenges. The firm adheres to strict regulatory and financial standards so that clients can trade with confidence on global markets. Avic Management is a Registered Member of DCE Dalian Commodity Exchange.
For more information, please visit: https://www.avicmanagement.com
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