Liquidity is the key driver in all financial markets and when Central Banks decide to pour it on ( or turn off the spigot ) the ramifications are felt almost immediately . Commodities , which thrive on leverage in the futures markets , can see extreme movements , and this past summer was no exception as a series of rate tightenings and monetary directives conspired to break the back of most commodities .
Demand and Supply are usually forefront in measuring all asset classes , but liquidity has a very heavy hand
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