Saxo Bank. Commodity rally resumes supported by the four C’s

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Commodities staged a broad comeback this past week with the Bloomberg Commodity Index rising 2.1%, thereby retracing more than half the mid-May correction. Gains were seen across most sectors led by growth-dependent sectors such as industrial metals and energy. Global growth optimism, increased decarbonization efforts and spending by governments received renewed attention. Not least after big-spending President Biden announced a $6 trillion budget plan to boost U.S. economy combined with a continued recovery in global mobility, apart from a few major virus hotspots in Asia. 

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