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I am playing this headline with (GLD GDXJ GDX DGP) because Overall, these developments suggest three emerging themes that are likely to continue to dominate in 2010 and beyond:
Differentiation between commodities driven by the extent of supply constraints that will likely drive greater price dispersion across the commodity complex;
Resource realignment as emerging markets are forced to bid away scarce commodities from the developed economies, especially when supply constraints are more restrictive, which shifts the focus away from the sustainability of higher prices and towards the sustainability of higher growth;
Increasing macroeconomic correlations as resource realignment will likely increase the relevance of commodity prices and supply to the broader macroeconomic environment.
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