It is a common perception that primary commodity prices tend to move together. This perception is especially common among commodity traders who may justify an increase in the price of one commodity because the prices of other commodities have increased. This commodity price co-movement can be...

In recent years, fluctuations in such macroeconomic variables as interest rates and exchange rates appear to have significantly affected primary commodity prices. This paper studies the relationship between commodity prices and various macroeconomic variables. It focuses particularly on interest...