Quotes from Capital Economics:
- Commodity markets are paying less attention to the risk that Greece might be forced out of the euro-zone. Most investors still view "Grexit" as unlikely, or at least have confidence in the ability of policy-makers to limit contagion if it does happen. "Grexit" may not be imminent, but these views seem complacent to us.
- Thinking about the impact on commodities, the initial turmoil caused by "Grexit" would surely boost safe-haven demand for gold while undermining the prices of assets perceived to be riskier, including oil and industrial metals. But once the dust has settled, the break-up of a flawed monetary union might be the best outcome.
- It could provide the least painful solutions to debt and competitiveness problems, allow policy to be loosened across the region and ultimately prove to be a positive for economic activity. In time, this should be reflected in the prices of industrial commodities too.
