Analysis Topic: Commodity Markets - Metals, Softs & Oils
The analysis published under this topic are as follows.Friday, December 24, 2010
Commodities Top China’s Xmas Buy List / Commodities / Investing 2011
Commodities enjoyed a rip-roaring 2010. But as we close out the year, traders have to wonder: Is the bull party over? Will commodities slump in 2011? Not if China has anything to say about it.
China’s economy is growing at a 10% clip, and that is driving China’s demand for commodities of all types — crude oil, sugar, soybeans, copper and more — to new heights.
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Friday, December 24, 2010
Crude Oil Prices at Two Year High / Commodities / Crude Oil
Oil prices are pushing higher after reaching the highest mark in two years this week. A barrel of light sweet crude settled at $91.51, up $1.03, on the New York NYMEX Futures board Wednesday (December 23).
Oil pierced the $90 level earlier this week after spending most of the second half of 2010 moving up and down in the low to high $80s.
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Friday, December 24, 2010
Crude Oil and Gasoline 2011 Forecast / Commodities / Crude Oil
Just in time for Christmas, On Wednesday, Dec. 22, U.S. gasoline prices hit an average $3 a gallon for the first time in more than two years, according to AAA's Daily Fuel Gauge Report. Meanwhile, U.S. stocks and oil also climbed to the highest levels since 2008.
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Friday, December 24, 2010
Will Gold Price Fall in a Real Economic Recovery? / Commodities / Gold and Silver 2010
We have heard many commentators implying that a U.S. economic recovery that leads to the sort of growth that was seen before 2008 will give investors reasons to divest from gold. As the year end approaches and another year is on us, it seems wise to us to look at this carefully. All of us would dearly love to see a real recovery, with rising housing prices moving back to levels seen in 2008, strong employment data and consumers with plenty of disposable income to make life stress free again. In such a climate, one can understand that these desires would be accompanied by a fall in the gold price, which to many is a thermometer measuring the ailments of the developed world economies. But is that the reason that gold is at current levels?
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Friday, December 24, 2010
Gold Stocks HUI Falling Wedge / Commodities / Gold and Silver 2010
You can consider this Gold Market update to be gift wrapped. As I am unable to get presents to each and every reader this year for logistical reasons, these Gold and Silver Market updates are going to have to suffice, which is perfectly reasonable given how bullish they are.
Little has changed since the last updates were posted on the 5th December, but what change there has been has increased immediate upside potential in both gold and silver substantially, as the minor reaction in gold and sideways action in silver of recent weeks has served to further unwind the earlier overbought condition.
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Friday, December 24, 2010
Silver Steep Uptrend About to Break Higher / Commodities / Gold and Silver 2010
You can consider this Silver Market update to be gift wrapped. As I am unable to get presents to each and every reader this year for logistical reasons, these Gold and Silver Market updates are going to have to suffice, which is perfectly reasonable given how bullish they are.
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Friday, December 24, 2010
Crude is hyper bullish while Gold is trying to find a bottom / Commodities / Commodities Trading
We start with Commodities today and they are strong regardless of the fact that U.S Dollar has been a lot stronger in last week but first and foremost, Crude WTI which we went all out bullish off 2 days back as we wrote “WTI is now trading at a discount of $3.51 to Brent and as Brent is making new highs then WTI must follow too and we mince our words at that”. As we write Crude WTI is now trading at $91.40 and Brent is still maintaining a healthy distance of nearly $3 even after WTI has pushed upward rather sharply.
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Friday, December 24, 2010
Investor Gold Profit, Protection Despite Banking Cartel Manipulation Intervention / Commodities / Gold and Silver 2010
“Is the gold price being manipulated? There are those who say no, while others say yes - notably The Gold Anti Trust Association (GATA) - and on balance it looks to an impartial observer (relatively) that the answer is probably in the affirmative. But perhaps no more so than any other commodities and some stock prices. There is a whole mammoth industry out there - the big banks, hedge funds etc. - whose whole purpose is to make money from money and the more you have in the first place the easier it is to do. Not by producing anything useful, but through manipulation of prices through short selling in huge volumes to drive prices down, buying on the turn, allowing prices to rise back up, taking profits, then more short selling to drive prices down again and the cycle continues. This works better in a bull market, which gold has been in for the past ten years or so.
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Thursday, December 23, 2010
Agri-Food's Impact on Christmas and 2011 Clothing Prices as Cotton Price Continues to Soar / Commodities / Agricultural Commodities
Hopefully, those of you celebrating Christmas included lots of clothing in your gift shopping. Reason for that is giving or buying clothing is likely to become considerably more expensive in 2011. Our first chart below portrays the rather dramatic move in U.S. cotton prices over the past 90 weeks. Most noticeable is the price burst since late Summer, when the world discovered that global demand for cotton exceeded the global supply of cotton.
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Thursday, December 23, 2010
How Gold Can Protect Your Portfolio From the Economic Insanity / Commodities / Gold and Silver 2010
Investors should be gravely concerned about the future of their portfolios, according to a newly released report from Bullion Management Group Inc (BMG). The reason? Because today’s fiscal and monetary policies have set the stage for a wrenching period of currency devaluation, portfolio destruction and potentially devastating inflation.
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Thursday, December 23, 2010
Premiums on British Gold Sovereigns and Eagle Demand Show Lack of "Irrational Exuberance" / Commodities / Gold and Silver 2010
Gold has fallen marginally in all major currencies today. Market participants are winding down before the holiday break and further profit taking and year end book squaring is seeing volume fall and gold remain in a tight range. Gold will likely get direction from the durable goods orders, consumer sentiment and new home sales data later today.
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Thursday, December 23, 2010
How to Spot the Top of the Gold Market / Commodities / Gold and Silver 2010
Chris Weber writes: I recently read an article about the famous Aden sisters in BusinessWeek. Something Mary Anne Aden said in it really struck a chord with me.
In the midst of showing the generally fantastic track record of the Adens, they talk about their "biggest goof": how they stayed bullish on gold in the early 1980s. "We were new to the game," said Mary Anne. "We were feeling enormous pressure from our subscribers to stay bullish."
Thursday, December 23, 2010
Bloomberg Counters Gold’s Run with Absurd, Baseless Hit-Piece / Commodities / Gold and Silver 2010
Monday morning I was greeted via my inbox with a Bloomberg report on Gold. Bloomberg has a series called “The Dark Side of Gold.” Its important to note this isn’t the first time the news organization has attempted a hit-piece on Gold. Iwroteaboutthisexactlyoneyearagoand identified the cases and examples of Bloomberg’s gold bashing.Read full article... Read full article...
Wednesday, December 22, 2010
What Is Wrong With Gold? A Cyclical Overview / Commodities / Gold and Silver 2010
Why are metals stocks falling? When at the end of the year, the mining companies will or should be reporting solid earnings? Maybe even blow out earnings. Is it a sign that the price of gold and silver are about to fall? Is it a chance to get into the metals and metals stocks cheap?Read full article... Read full article...
Wednesday, December 22, 2010
Gold Flows to China Rise Sharply Ahead of New Year as Savers Reject Negative Bank Interest Rates / Commodities / Gold and Silver 2010
WHOLESALE PRICES for gold moved sideways around $1390 per ounce in London on Wednesday morning, little changed as world stock markets also held flat but crude oil crept above $90 per barrel.
Silver bullion traded inside this week's tight range below $29.50 per ounce.
Wednesday, December 22, 2010
Gold Rises as UK Finances Deteriorate and IMF Gold Sales End / Commodities / Gold and Silver 2010
Gold Rises as UK Finances Deteriorate and IMF Gold Sales End
Gold and silver edged moderately higher again yesterday in most currencies. Profit taking and book squaring prior to year end have led to lacklustre range bound price action. News that the IMF gold sales to central banks has been completed, saw gold prices rise slightly. Despite the gold sales being off market - directly from the IMF to creditor nation central banks diversifying monetary reserves - the potential overhang of IMF gold supply and perceived risk was one of the few bearish factors in the gold market.
Gold is currently trading at $1,389.32/oz, €1,057.08/oz and £898.31/oz.
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Wednesday, December 22, 2010
Uranium Is Still a Growth Industry / Commodities / Uranium
Rodman & Renshaw Senior Analyst Alka Singh follows the entire mining sector, including uranium. Though just a year ago the uranium sector was considered stalled and possibly moribund, she finds undervalued stocks for her clientele that includes both small and large institutional investors. In this exclusive interview withThe Energy Report, Alka generously shares some names for growth that investors might consider to take advantage of burgeoning energy demand that will surely include nuclear power plants all over the world.
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Tuesday, December 21, 2010
Silver Outperforms Gold - Profit! Silver Underperform Gold - Profit Again! / Commodities / Gold and Silver 2010
In our earlier essay, we saw how the silver-gold pair is ideal to bet on for mean reversion. We also saw how to make use of the mean reverting properties of any ratio. Continuing on that topic, we will investigate whether mean reversion holds true for the gold-silver ratio in particular. We will examine variables one should watch over when looking at regime changes (points where the mean is set to new values). We will also explore a simplistic trading strategy on the ratio based on some core parameters that determine entry and exit points.
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Tuesday, December 21, 2010
Silver and Gold Short-term Uncertainty, Could Follows Stocks Lower / Commodities / Gold and Silver 2010
The past week has failed to provide clear signals in most markets worldwide. Perhaps the uncertainty of the financial stability of several European countries further compounded by normal holiday and year-end influences have thus far made December a difficult month to read.
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Tuesday, December 21, 2010
Gold 2011 Forecast at $1500, $1600 or "Outrageous" $1800 on Euro Crisis, US-China Currency War / Commodities / Gold and Silver 2011
THE PRICE OF GOLD in professional wholesale dealing touched a 4-session high early Tuesday at $1390 per ounce, rising for Euro and UK investors as world stock markets hit new two-year highs.
Platinum prices rose to $1715 the ounce at today's London Fix, gaining some 14.6% higher from New Year 2010.