Pandemic’s Commodity Market Impacts

August 13, 2020

Predata recently shared insights on how the coronavirus pandemic has impacted commodity markets with our partners at the CME Group, highlighting data available through the CME DataMine platform.

The webinar summarizes a number of trends we have observed since the beginning of the pandemic on how coronavirus has impacted commodity market supply chains and investor demand, as well as our analytics on reactions to outbreaks across the world.

Investor Demand for Precious Metals

Early in the pandemic, building economic uncertainty and unprecedented central bank interventions drove demand for safe-haven assets, including precious metals. As gold prices surged in late-March, Predata alerted clients to increased interest in platinum as an investment, which preceded a 9% rally in platinum futures, narrowing the price ratio of gold to platinum by more than 10%.

There are signs a similar trend is taking place. Interest in platinum investment began rising steadily in early-July. Since Predata customers received an alert on the elevated attention at the end of July, the price ratio of gold to platinum has dropped by more than 5%.

Public Transit Interest Erases Gains

Predata’s U.S. Transit Research Index reflects online interest in public transportation services in the 25 largest U.S. metropolitan areas across mobile search, website, and app platforms. Though the index increased through most of June as cities and states across the country reopened, the nationwide surge in cases in July erased all of the gains. Interest in public transit across the United States is as low as during the initial peak of the outbreak in April, demonstrating Americans’ willingness to shift their behavior independently of government lockdown orders when faced with rising cases.

Predata will continue to provide customers with the latest insights on how the pandemic is impacting commodity markets, and whether signs are pointing towards a sustained recovery in economic activity.

Learn more about how Predata’s AI platform can help you stay on top of global emerging trends and impacts to be better prepared for what’s next.