Emerging Markets Hit by Metals Downturn

Commodity prices are well off their 2011 highs. In recent months, they have crumbled quickly. No wonder why Peru’s economy has slowed down from annual growth north of 7% in late 2013 to just 1% today. The country’s stock market has cooled off as well, losing nearly half its value over the past three years.

“A lot of these countries thought they were in this golden sweet spot that would last forever. Clearly it didn’t. Now that tide is going out,” said Win Thin, global head of emerging markets currency strategy at Brown Brothers Harriman.

The latest downturn in the commodities market is hitting metals of all stripes. Prices for gold, silver, copper, iron ore, aluminum, platinum, palladium, tin and nickel have all declined this year. Gold recently fell below $1,100 — its lowest level in five years.

via CNN

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza