Commodity correlation returning to pre-2008 levels, say analysts

Correlations between commodities and other asset classes are in retreat, say analysts, as the impact of macroeconomic jitters diminishes and prices become more heavily affected by physical supply and demand.

During the past five years, commodity prices often moved in lockstep with those of other asset classes, especially equities, as investor sentiment shot up and down in response to broader financial woes. Fears related to the eurozone sovereign debt crisis, the US debt ceiling and a possible