Gold, silver and platinum with new bottoms (2)

The Bloomberg Commodity Index, which tracks the performance of commodities, declined 10% from its nearly three-year high in May, and its sell-offs began to shift to other assets.
This is clear from the performance of the mining companies, the worst performing sector this month, as part of the European Stoxx Europe 600 Index. This is not a big surprise, given the poor performance of the metals.
The weakness of the raw materials was also transferred to the currencies of the raw-producing nations. Almost all 22 key commodities in the Bloomberg Commodity Index fell from their peak in May, with the exception of live cattle, cotton and orange juice. Copper, which is often used as a barometer for the state of the world economy, fell by as much as 18% over the period.
The burning trade war and the uncertainty about Chinese demand for raw materials is one of the main reasons for the depreciation of raw materials. While there is uncertainty about China, raw materials will continue to be under pressure, according to market observers.

Gold, silver and platinum with new bottoms (1)

What happens to raw materials should seriously stress investors on global stock markets. Because they have entered a correction phase and traditionally it is believed that the direction of commodity price movements points to the situation in the growth of the world economy.
Copper, which has often predicted short-term GDP growth with very high precision, saw a decline of more than 18% from its peak in May. In the light of the appreciation of the US dollar, copper fell below $6,000 (18% of its peak in May), and US crude oil tested $68 a barrel.
Gold fell below $1,202, and platinum rested near a 14-year low at levels below $800 per ounce. Silver, another industrial noble metal, is about to test the psychological limit of $15 per ounce.

Despite the higher oil prices, raw materials are not expensive

Oil prices reached a three-year high. However, despite the upward appreciation of "black gold", investors should keep in mind that raw materials are still relatively cheap.
Looking at the better diversified index The Bloomberg DJ-UBS index, which tracks raw materials, which shows that raw materials such as agricultural, industrial metals, meat and possibly even natural gas, may still have good prospects.
The index reached its peak at 140 levels in 2014 and bottom in 2016 at a level of nearly 72. It is currently traded at levels of around 87.
And although it is unlikely to be expected to return to its highest levels historically, it would be reasonable to expect further increases in the levels of this index.

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