"In the short-term, the US dollar has governed the direction of the commodity prices and that has been unfortunately downward but again we believe that the US dollar is likely to weaken over the course of the next year,” David Lennox of Fat Prophets said in an interview with CNBC-TV18.

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“We certainly believe that the stimulatory programmes that we have seen over the course of last year during COVID-19 have certainly put into trade a significant amount of money that is going to go into buying commodities,” he added.

In terms of iron ore, he stated, “Iron ore is the one we are focusing on. In the longer-term, you still have to look at those particular commodities that are aimed at electric vehicle (EV) market. So we are looking at iron ore, lithium and nickel.”

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(Edited by : Priyanka Rathi)