Commodities performed well in 2010 with silver being the best performing commodity and precious metals being the best performing sector/complex. The strength last year was driven by macroeconomic developments and weakness in USD. However, these couldn't solely explain the whole issue. Indeed, commodity prices showed lucrative gains even after adjusted for trade-weighted USD. We expect more upside for commodities in 2011. Apart from better economic recovery, improved sentiment in the financial markets and prolonged expansionary monetary policy in developed countries, fundamentals will also be supportive. After talking about the outlooks for oil and gold last week, we will discuss about silver and PGMs in this article.
