Commodity prices continued to catch the spotlight in the year 2014, where the high action volatility emerged month after month providing enormous opportunities for traders to make profits. The year started with a bang in the prices of nickel and aluminium, which were the laggards in 2013; while natural gas also surprised the markets with the upside spikes it showed in the initial months of the year. On the other hand, contrary to the broader views gold prices remained broadly flat at domestic markets, even after the tapering of bond buying programme by the US Federal Reserve and the expectations of a rate hike in 2015, while silver prices slipped to 5 year lows bringing the gold to silver ratio to multi year highs. Last but not the least, the most talked about commodity of the year remained crude oil, which tanked around 45% in an unprecedented fashion which dented the economies of oil exporting countries and helped the oil importing nations like India to reduce their trade deficit.
As we move forward in 2015, the base metal complex and the energy counters are trading with a strong negative bias, while the precious metals have stepped in to the year on a positive note. Whether the current trend will continue to dominate the markets during the year or will it reverse is a question which will be addressed over time.
We hereby roll out the annual Commodity Report for the year 2015, covering major highlights of 2014 and citing the crucial factors lined up for 2015 with expected trends and price outlook for all the counters.
Wishing all our clients a very happy trading year 2015!