Gold was a major victim of the FOMC’s recent shift to a more hawkish tone. It is down more than 4.8% since Wednesday’s FOMC meeting, taking it to levels last seen at the end of April. Although we remain positive on…
Dear Client, Next week, instead of our regular report, we will be sending you a Special Report from BCA Research’s MacroQuant tactical global asset allocation team. Titled “MacroQuant: A Quantitative Solution For Forecasting…
Highlights Oil demand expectations remain high. Realized demand continues to disappoint. This means OPEC 2.0's production-management strategy – i.e., keeping the level of supply below demand – will continue to dictate…
Gold is down more than 2% so far in June following a sharp rally earlier this quarter. Even last Thursday’s inflation surprise failed to help the yellow metal, which despite gains immediately following the inflation release…
Highlights US labor-market disappointments notwithstanding, the global recovery being propelled by real GDP growth in the world's major economies is on track to be the strongest in 80 years. This growth will fuel commodity demand,…
Highlights Political and corporate climate activism will increase the cost of developing the resources required to produce and deliver energy going forward – e.g., oil and gas wells; pipelines; copper mines, and refineries. Over…
After a poor start to the year, gold is up 10% so far in Q2. Several factors explain this performance. First, inflation expectations jumped during this period. The 10-year breakeven rate was up 19 basis points between the…
Highlights Over the 2021-22 period, renewable capacity will account for 90% of global electricity-generation additions, per the IEA's latest forecast. This will follow the 45% surge (y/y) in renewable generation capacity added last…
Commodity prices have been on a tear recently and evidence of rising inflation continues to pop up. On the surface, rising commodity prices and mounting inflationary pressures are a recipe for higher bond yields. But puzzlingly,…
Highlights Rising CO2 emissions on the back of stronger global energy growth this year will keep energy markets focused on expanding ESG risks in the buildout of renewable generation via metals mining (Chart of the Week). …