As we all know, commodities mainly include agricultural and sideline products, metal products, energy products and chemicals. In the stock market, commodities usually refer to commodity futures. If commodity prices rise due to increased demand, it may be a signal of accelerated economic recovery. So, what are the reasons for the rise in commodity prices?

What are the reasons for the rise in commodity prices?

The reasons for the rise in commodity prices mainly include larger stimulus measures, weak dollar and inflation risks. From the perspective of liquidity, a loose monetary environment is one of the necessary conditions for the rise of commodity prices, which is more due to the structural price increase brought about by imported inflation. There are many reasons for the rise in commodity prices, especially the surge in commodity prices caused by Wall Street's use of commodity pricing power and the proliferation of dollars.

Generally speaking, the rise in commodity prices is mainly caused by the macro background of loose liquidity and the expectation of global economic recovery from the epidemic. Among them, international commodities represented by crude oil have not only commodity attributes, but also financial attributes.