Metal prices saw strong gains this week. The dollar has softened and there are expectations of policy easing in China; low inventories and most of the metals have also been supportive.
Omicron as a variant (of COVID-19) is less severe than the previous strains and that seems to be supportive.
Most of the commodities seem to be doing well because crude prices are trading at a one month high. Cotton is trading at a four week high.
So a weakness in the US dollar, expectation that COVID-19 is not going to be severe and there is a supply crunch going forward is supporting many of these commodities.
Watch the accompanying video of CNBC-TV18’s Manisha Gupta for more details.