Commodity Supercycle Sets New Record Highs – What’s Next For Prices?

Last week, a long-list of commodities blasted through multi-year highs.

Aluminium prices hit an all-time record high. Nickel prices hit 10-year highs and Uranium prices surged to 8-year highs – surpassing a record 7-year high, set only a month ago.

The bullish momentum also split over into other commodities with Natural Gas rallying over 16% to post its biggest weekly advance since August 2020.

Meanwhile, WTI Crude Oil soared above $88 a barrel and Brent Crude hit $90 a barrel – notching up a gain of over 35%, since the start of this year.

Elsewhere in the commodity market, Palladium prices hit a four month high – taking this year’s gains to over 25%. Palladium’s explosive rally also pulled up Lithium – sending prices skyrocketed to an all-time record high. Lithium prices are now up 497% from this time last year.

There are plenty of reasons why commodities are on the move, these include; rapidly surging global inflation, tightening supply vs soaring demand, logistical bottlenecks to ever growing supply chain issues – all combined with a very disruptive economic recovery from the pandemic that shows no signs of fading anytime soon.

And let’s not forget the switch toward a greener world, which is fuelling fierce demand for Commodities such as Aluminium, Copper, Palladium, Nickel, Lithium and Uranium as economies race to decarbonize the world by 2030.

All in all, the evidence is mounting that a new commodity supercycle is underway. It goes without saying, that commodities are definitely one of the hottest and most exciting asset classes to watch in 2022.

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:

For a look at all of today’s economic events, check out our economic calendar.