Enter the commodoties bubble?

Wednesday 7 January 2026

Is a widening commodities bid suggesting reflation? Or a bubble? OR something else? The Market Ear.

No inflation…

….unless you need commodities. Are we in the early stages of reflation? As Goldman’s Privorotsky writes: “…either points to a broad dollar devaluation or a rapid re-acceleration in the global economy.” Chart 1 shows BCOM vs US 5yr5yr. Chart 2 shows the BCOM vs the DXY. The dollar has done very little since April, while the BCOM has surged.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.