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Marc Faber’s Big Bet: Gold to Rise 30% in 2015

Posted on 15 January 2015 by VRS  |  Email |Print

Famed investor Marc Faber, famously known as “Dr Doom” for correctly forecasting market crashes and for having a perennially bearish outlook, expects gold prices to rise by 30 per cent in 2015. In Indian rupee, gold could surge from Rs. 27,000 to Rs. 35,000 per 10 gram, without adjusting for exchange rate and duties, if his forecast comes true.
“I’m positive that gold will go up substantially (in 2015) say 30 per cent,” Market Watch quoted Dr Faber as saying at Societe Generale’s global strategy presentation in London on Tuesday………………………………………..Full Article: Source

China Commodity Imports Surge on Low Prices

Posted on 14 January 2015 by VRS  |  Email |Print

China imported record volumes of commodities last year, taking advantage of lower prices to maintain its position as a massive buyer of global resources despite a slowdown in its broader economy.
Import volumes of iron ore, crude oil, copper and soybeans hit an all-time-high in 2014, according to official data released Tuesday. Imports of iron ore, crude oil and soybeans for the month of December alone also reached record volumes in a late-year surge of shipments………………………………………..Full Article: Source

Oil Prices And The Significant, Long-Lasting Impact On The Economy

Posted on 14 January 2015 by VRS  |  Email |Print

In 2014, a number of events will go down in history as major, market-moving events. From an economic viewpoint, though, perhaps no other event will have a more significant and long-lasting impact than the collapse of oil prices. At this time last year, oil was trading well above $100 per barrel. Last week, the price of a barrel of West Texas Intermediate oil traded at less than $50.
Over the years, oil prices have fluctuated. The last two major oil price declines were driven by central bank policy errors – monetary contractions which led to global economic recessions. During an economic recession, the world economic activity contracts and demand for oil declines. When demand for any commodity contracts, prices decline………………………………………..Full Article: Source

UAE says OPEC will no longer shore up oil price

Posted on 14 January 2015 by VRS  |  Email |Print

The United Arab Emirates said on Tuesday that OPEC will no longer move to shore up crude prices, arguing that rising North American shale oil output needed to be curbed. World prices have been falling since June but the pace of the slide accelerated in November when the Organisation of the Petroleum Exporting Countries (OPEC) decided to maintain its production unchanged at 30 million barrels per day.
Analysts say that richer cartel members like the UAE have been ready to accept the price fall in the hope that it will force higher-cost shale producers out of the market………………………………………..Full Article: Source

Here’s why the price of oil is dropping so fast

Posted on 14 January 2015 by VRS  |  Email |Print

This a complicated question, but it boils down to the simple economics of supply and demand. US domestic production has nearly doubled over the last six years, pushing out oil imports that need to find another home. Saudi, Nigerian and Algerian oil that once found a home in the United States is suddenly competing for Asian markets, and the producers are forced to drop prices.
On the demand side, the economies of Europe and developing countries are weakening and vehicles are becoming more energy-efficient. So demand for fuel is lagging a bit………………………………………..Full Article: Source

Gold price may average $1,215/oz in 2015, possible low of $1,050/mt: Mitsui

Posted on 14 January 2015 by VRS  |  Email |Print

The gold price is likely to average $1,215/oz in 2015 with a forecast high of $1,340/oz and a possible low of $1,050/oz, Mitsui said in a price outlook piece Tuesday. Writing in the research analyst David Jollie said that the surprise decision by the Indian authorities to relax the 80:20 rule for gold late in 2014 was a positive for the gold market.
As such he predicts that Indian demand should increase in 2015. The 80:20 rule meant that 20% of all imports had to be reexported. This was on top of a 10% import tax, which remains in place………………………………………..Full Article: Source

Barclays expects gold prices to struggle as Fed plans rate hike

Posted on 14 January 2015 by VRS  |  Email |Print

Barclays said on Monday it expects gold prices to test new lows in 2015 as the yellow metal battles with a strengthening dollar and the first interest rate hike in nine years by the U.S. Federal Reserve. The bank forecasts prices to average $1,170 per ounce, down from its earlier view of $1,180. It forecast the 2016 gold price to be at $1,150 an ounce.
Gold prices, which tend to struggle during periods of rising interest rates, come under pressure as the market anticipates a rate hike in the months leading up to the Fed announcement, Barclays said………………………………………..Full Article: Source

Gold to average $1,230/oz in H1, silver $17 – Heraeus

Posted on 14 January 2015 by VRS  |  Email |Print

Physical demand for gold from China may offset the various bearish factors that currently cloud the market, Heraeus said. The precious metals group sees gold trading in a range of $1,125/1,325 per ounce and averaging $1,230 in the first half of the year, a period when US interest-rate rises and further declines in oil prices are likely.
“Physical demand from China may offer compensation for the factors burdening gold in the coming months,” it said in a note on Tuesday. “A pickup in demand would be the logical consequence now – particularly now that the trend of shifting demand from west to east should continue.” India’s lopsided trade balance will complicate gold imports and artificially lower demand despite the recent changes to import restrictions, Heraeus believes………………………………………..Full Article: Source

Copper price slump may not yet be deep enough to cut much output

Posted on 14 January 2015 by VRS  |  Email |Print

A slump in copper prices to their lowest in five years has pushed as much as a tenth of the world’s miners into the red, but the market may not yet feel enough pain to trigger deep production cuts this time round.
Prices on the London Metal Exchange pierced below $6,000 per tonne on Monday for the first time since October 2009, as the metal slid along with a relentless decline in oil prices and concerns about a growing metal surplus. Copper’s 16 percent decline since July is the biggest since 2013………………………………………..Full Article: Source

Oil hits six-year low as Goldman Sachs slashes price forecast

Posted on 13 January 2015 by VRS  |  Email |Print

US investment bank expects oil to fall to around $40 per barrel as Opec price war intensifies. Oil prices hit a new six-year low on Monday as Goldman Sachs, the bank that once predicted that the cost of a barrel would hit $200, lowered its forecast for crude.
Brent oil - a global benchmark of crude blended from 15 North Sea fields – crashed by almost 5pc by the close of trading in London to around $47.63 per barrel. Goldman Sachs earlier lowered its three-month estimate for Brent to $42 per barrel from a previous forecast of $80 and reduced US crude to a price of $41……………………………………….Full Article: Source

America’s Going to Lose the Oil Price War

Posted on 13 January 2015 by VRS  |  Email |Print

The financial debacle that has befallen Russia as the price of Brent crude dropped 50 percent in the last four months has overshadowed the one that potentially awaits the U.S. shale industry in 2015. It’s time to heed it, because Saudi Arabia and other major Middle Eastern oil producers are unlikely to blink and cut output, and the price is now approaching a level where U.S. production will begin shutting down.
Representatives of the leading members of the Organization of Petroleum Exporting countries have been saying for weeks they would not pump less oil no matter how low its price goes. Saudi Arabian Oil Minister Ali Al-Naimi has said even $20 per barrel wouldn’t trigger a change of heart. ……………………………………….Full Article: Source

Oil Prices: What Is Behind the Drop? Simple Economics

Posted on 13 January 2015 by VRS  |  Email |Print

The oil industry, with its history of booms and busts, appears to be in the early stages of its latest downturn. The price of oil has plunged more than 55 percent to under $50 a barrel since June. That is the lowest price since the depths of the 2009 recession.
Oil analysts predict that the price could fall below $40 before beginning to rebound. But even optimists say $70 a barrel by the end of the year is highly doubtful………………………………………..Full Article: Source

OPEC price war in Asia intensifies as oil falls below $50

Posted on 13 January 2015 by VRS  |  Email |Print

Even as Saudi Arabia and its Gulf OPEC allies appear united in their refusal to cut output to boost global oil prices, they are becoming locked in an increasingly fierce battle to secure market share in Asia.
Oil prices have slumped below $50 a barrel, the weakest since 2009, triggering a price war between producers to secure customers in Asia. And the price outlook remains grim with Goldman Sachs slashing its three-month benchmark crude forecasts to just above $40………………………………………..Full Article: Source

The days of $100 oil are gone: Saudi prince

Posted on 13 January 2015 by VRS  |  Email |Print

Prince Alwaleed bin Talal, billionaire businessman and a memeber of the Saudi royal family, told USA Today that $100 oil prices are history. “I’m sure we’re never going to see $100 anymore,” said Al-Waleed. “I said a year ago, the price of oil above $100 is artificial. It’s not correct.”
The prince, who was recently estimated to have an estimated wealth of $31.2 billion, said the decline is due to both too much supply and weak global demand. He noted that Iraq and Libya, despite unrest, are both producing a lot of oil. Many major economies, except the US, are weak………………………………………..Full Article: Source

How to Track Gold Price Trends with the Kitco Gold Index

Posted on 13 January 2015 by VRS  |  Email |Print

While gold price trends mostly stem from changes in supply and demand, that’s not the full story. Sometimes the value of the U.S. dollar changes the gold price – and this can cause a misleading view of the true value of gold…
You see, most of us track gold priced in U.S. dollars. As the dollar gains strength, it takes fewer of them to buy the same quantity of gold. The opposite is true when the dollar weakens. Part of the reason gold prices move up or down is they reflect this change in U.S. dollar value. So higher gold prices do not always mean higher demand………………………………………..Full Article: Source

Gold price jumps to highest since October

Posted on 13 January 2015 by VRS  |  Email |Print

Gold on Monday continued to build on recent gains as sagging equity markets, a fresh slide in the price of oil and doubts about the strength of the US economy saw investors piling into safe haven assets.
In afternoon trade on the Comex division of the New York Mercantile Exchange gold for February delivery was changing hands for $1,235.60 an ounce, up $19.50 or 1.6% from Friday’s close. Gold is now trading at its highest since October 22 and has jumped more than 4% jump so far this year. Gold hit a near four-year low of $1,143 early November………………………………………..Full Article: Source

What Trend Will Aluminum Price Track in 2015?

Posted on 13 January 2015 by VRS  |  Email |Print

Aluminum price have been falling these recent days? What trend will aluminum price track in 2015? “Aluminum prices are forecast to fluctuate between 12,500-14,000 yuan per tonne in 2015,” said Guosen Futures’s research report, adding big supply pressures will stand out in Q1 2015 due to weaker consumption from 2014 Q4’s.
Supply concerns on bauxite, growth of new capacities and power price reform will be the three major factors dominating Chinese aluminum market in 2015, Guotai Junan Futures’s research report pointed out. “Aluminum prices are expected to fall first, and then rally before falling again in 2015, with little possibility that aluminum prices will rise above 15,000 yuan per tonne,” the report noted………………………………………..Full Article: Source

Commodity prices face more pressure as China’s growth to fall

Posted on 12 January 2015 by VRS  |  Email |Print

Prices for iron ore and other commodities exposed to China’s building sector will remain under pressure this year as construction falls and the Chinese government holds firm in its push to become a more services-orientated economy, a leading economist has warned.
Ahead of UBS’s annual conference beginning in Shanghai today, the bank’s chief economist for China, Wang Tao, said the ­nation’s property construction “adjustment” would continue this year as developers lighten inventories to improve cashflow………………………………………..Full Article: Source

Decoding the oil price fall

Posted on 12 January 2015 by VRS  |  Email |Print

Year 2015 will be crucial as shale oil firms begin to feel the pinch of low prices. Are falling oil prices good or bad for the global economy? And how do they work for India? Till recently these questions were no-brainers. Cheaper oil is obviously good for the global economy; for an energy-intensive economy such as India’s, which also depends on imported oil for meeting four-fifths of its needs, a fall in oil price is like manna from heaven.
Yet, the biggest fall in the stock market in five-and-a-half years last week was triggered by crude oil piercing the $50 a barrel mark on its unrelenting downward journey. Isn’t that ironic?……………………………………….Full Article: Source

Most developing countries will benefit from oil price slump

Posted on 12 January 2015 by VRS  |  Email |Print

Gains from low oil prices can be substantial for developing-country importers if supported by stronger global growth, says a World Bank Group analysis of the oil price decline, contained in the latest edition of Global Economic Prospects.
The decline in oil prices reflects a confluence of factors, including several years of upward surprises in oil supply and downward surprises in demand, receding geopolitical risks in some areas of the world, a significant change in policy objectives of the Organization of the Petroleum Exporting Countries (OPEC), and appreciation of the U.S. dollar. Although the relative strength of the forces driving the recent plunge in prices remains uncertain, supply related factors appear to have played a dominant role………………………………………..Full Article: Source

Saudi Arabia’s crude oil price war

Posted on 12 January 2015 by VRS  |  Email |Print

What exactly is driving the price of oil down in today’s markets — and ultimately at the gas pump? The primary driver is that our ally, Saudi Arabia, has declared war on the booming American shale and energy exploration industry. Yes, America, we are in an all-out energy war against the Middle East’s oil heavyweight champions.
The Saudis’ latest move tips their hand to a price war. While oil inventories are already sky-high, and US exploration and production is at a 25-year high, why would our “friends” the Saudis announce this week that they will raise the price of oil for Asia and other buyers but cut the price for oil it sells here in America?……………………………………….Full Article: Source

Oil Producers Betting on Price Drop With OPEC Not Curbing Output

Posted on 12 January 2015 by VRS  |  Email |Print

The oil industry was listening as OPEC talked down crude prices to a more than five-year low. Drillers, refiners and other merchants increased bets on lower prices to the most in three years in the week ended Jan. 6, government data show. Producers idled the most rigs since 1991, with some paying to break leases on drilling equipment.
Producers are hedging more and drilling less on concern that the biggest plunge in prices since 2008 will continue. Oil fell for a seventh week after officials from Saudi Arabia, the United Arab Emirates and Kuwait reiterated they won’t curb output to halt the decline………………………………………..Full Article: Source

What’s In Store For Gold Price in 2015?

Posted on 12 January 2015 by VRS  |  Email |Print

The year started out strong and many gold bulls called the end of the downtrend. However a strengthening US Dollar, signs of economic growth in the US, and concerns over the Fed’s tapering program put an end to the bull market pretty early in the year when gold peaked in March at ~$1,370/oz.
These signs, among others (which I will discuss in a moment), prompted me to call for more downside in the gold market in September when the price was hovering around $1,300/oz. Shortly thereafter the gold price fell below its critical support level of ~$1,180/oz. and traded down to ~$1,135/oz. before rebounding back to today’s range, which is roughly $1,180 – $1,220/oz. ……………………………………….Full Article: Source

No chance of OPEC output cut, even after oil dips below $50

Posted on 09 January 2015 by VRS  |  Email |Print

Saudi Arabia and its Gulf OPEC allies are showing no sign of considering cutting output to boost oil prices, even though they dipped below $50 a barrel this week.
OPEC decided against limiting production at its last meeting on Nov 27, despite misgivings from non-Gulf members, after Saudi Oil Minister Ali al-Naimi said the group needed to defend market share against U.S. shale oil and other competing sources………………………………………..Full Article: Source

Gold price predictions: Will gold rise or fall in 2015?

Posted on 09 January 2015 by VRS  |  Email |Print

Leading fund manager claims that after its three-year slump gold has ‘bottomed out’ - but not many agree. Top fund manager Evy Hambro, who runs one of the most popular funds focused on gold and gold mining shares, is predicting the precious metal will recover from its three-year slump in 2015.
Since the summer of 2011 when it peaked at $1,900 the price of gold has fallen almost 40pc to trade today at around $1,200 (£800). Mr Hambro’s fund - the £1bn Blackrock Gold and General - has fared worse, losing investors more than half their money over the past three years………………………………………..Full Article: Source

HSBC raises 2015 gold price forecast on safe-haven cues, lowers PGMs

Posted on 09 January 2015 by VRS  |  Email |Print

HSBC has raised its average gold price forecast for 2015 should the growing strength of the dollar and geopolitical fears burnish its safe-haven qualities, it said. It now sees gold averaging $1,234 per ounce this year, up from its previous forecast of $1,175, it said in a note on Thursday. It also sees gold in a trading range of $1,120-1,305 in 2015.
The bank left its 2016 forecast unchanged at $1,275 and introduced a 2017 forecast of $1,275.“The possibility that the forex market is under-estimating the risk of destabilizing currency moves is an important element… gold prices may gain modestly in 2015, even in the face of a stronger US dollar,” it said………………………………………..Full Article: Source

Investors bet on copper price fall

Posted on 09 January 2015 by VRS  |  Email |Print

Investors are betting the price of copper will fall further as the US dollar continues to strengthen and global economic growth shows few signs of recovery. Yet a reduction in mine supply last year has left the market almost balanced, meaning any pick-up in demand or further supply reduction could tip the price into positive territory, leaving those short the metal on the wrong side of the trade.
At 16 per cent of the London Metal Exchange market, the largest market in the world for metals trading, contracts betting that copper will fall are at the highest level since the exchange started publishing the data in July. On the Shanghai Futures Exchange, the number of similar contracts has jumped by 180 per cent since the beginning of December………………………………………..Full Article: Source

Commodity price falls trigger big drop in assets

Posted on 08 January 2015 by VRS  |  Email |Print

Last year will go down as one of the most difficult years ever for commodity investments, according to Barclays, which says steep price falls and liquidations triggered a $50bn decline in assets under management.
Commodities recorded their biggest annual loss since the global financial crisis in 2008 with the spot Bloomberg Commodity Index, which tracks the performance of 22 products including oil and copper, falling almost 17 per cent per cent to its lowest level in five and a half years………………………………………..Full Article: Source

Oil price crashes through $50 barrier

Posted on 08 January 2015 by VRS  |  Email |Print

A barrel of Brent crude cost less than $50 for the first time in nearly six years on Wednesday morning, continuing the rout of oil prices. Brent slumped as low as $49.92 in early trading, the first time it has been below the psychological $50 level since April 2009. It later crept back above $50.
Equity markets appeared unmoved at the latest fall in the oil price, having previously responded by selling shares and buying so-called ’safe haven’ assets such as gold. The FTSE 100 was up 0.6pc before 9am. London’s benchmark stock index has already been particularly hard hit by the commodity’s plunge as oil and mining stocks account for about 20pc of the FTSE 100………………………………………..Full Article: Source

Outlook: Gold price seen positive

Posted on 08 January 2015 by VRS  |  Email |Print

Gold price jumped more than 1 percent to a three-week high on Tuesday as investors continued to eye Greece’s future in the Euro zone and await upcoming Federal Reserve minutes for hints on the timing of an interest rate hike widely expected this year. Political uncertainty in Greece ahead of the country’s elections on Jan.25 has renewed fears of a possible Greek exit from the Euro zone.
Gold futures were likely to find support at $1,180 an ounce and resistance at $1,255. In upcoming days, we can expect COMEX Gold February Futures prices to trade on positive note on the back of concern over Greece’s future in the Euro zone. Technically If COMEX Gold breaks the level of $1223 then it can test the level of $1250 and $1280 on upside. If MCX Gold Feb futures sustains above the levels of 27500 on upside then upward movement can be seen till the levels of 27700 and 28000………………………………………..Full Article: Source

Commodities price supercycle ends after century of price falls

Posted on 07 January 2015 by VRS  |  Email |Print

Commodities Supercycle: In the past decade, the rise in commodity prices have undone the decline of the previous century, rising to levels not seen since the early 1900s. Despite current declines, research by McKinsey Global Institute shows that demand for energy, food, metals, and water should rise inexorably as 3bn new middle-class consumers emerge in the next two decades. The global car fleet, for example, is expected almost to double, to 1.7bn, by 2030.
The plunge in the price of oil has got the greatest attention globally but several other key commodities have also been falling. Brent crude, the international benchmark and US oil, known as West Texas Intermediate (WTI), lost more than half of their value since mid-2014 and on Monday WTI fell below $50 a barrel for the first time since April 2009, before finishing the day at $50.05………………………………………..Full Article: Source

How low could oil prices go?

Posted on 07 January 2015 by VRS  |  Email |Print

With US crude falling below the $50 mark for the first time in nearly six years, some traders are betting on $20 a barrel. It’s textbook economics: falling demand and rising supply. The United States has ramped up domestic oil production, by investing in highly-polluting fracking projects. US oil production increased by around 48% between 2008-13, taking output to 11m barrels a day by early 2014.
At first, the US surge in output was offset by supply disruptions elsewhere: western sanctions on Iran, turmoil in Iraq and Libya . But some supply problems have abated. Last month, Iraq’s oil exports were at their highest since 1980. Russia produced more oil in 2014 than at any time since the collapse of the Soviet Union………………………………………..Full Article: Source

Oil Price Q&A: What the Plunge Means for Gas Prices, the Economy and Markets

Posted on 07 January 2015 by VRS  |  Email |Print

Oil prices dropped this week below $50 a barrel for the first time since April 2009. What do those dropping prices mean for the markets? For jobs? For GDP? And for you? National economics correspondent Josh Zumbrun and Brian Baskin, commodities and emerging markets editor, answered your questions about plummeting oil prices in a Q&A on Facebook. Below are excerpts from that exchange.
Question: “Oil price drop is mostly demand-driven. Weaker global demand, more U.S. independence, and China and India demanding less oil. So it has resulted in overproduction, so the glut of oil caused prices to fall down drastically.” Zumbrun: “That’s probably one factor. But it’s impossible to ignore the role of supply. Just look at this chart of U.S. oil production. There’s a huge supply shift here:……………………………………….Full Article: Source

Where will gold end 2015 – $1,000, $1,325 or maybe $2,500?

Posted on 07 January 2015 by VRS  |  Email |Print

Well there’s nothing like being optimistic at the start of a New Year and there are certainly many factors to be optimistic about if you are a gold bull. Gold demand remains strong – notably in China and India with those countries alone probably accounting for 100% or more of new mined gold at the moment.
At the end of this article we will make some not very scientific predictions on the final levels for the gold and silver prices at year end 2015 – perhaps to have these totally shot down in flames when the year end comes. It is always easy to be wise after the event. China (as per data from the Shanghai Gold Exchange withdrawals figures) is looking to perhaps see full year 2014 demand come to a little over the 2,100 tonne mark, thus only a fraction below last year’s record of 2,181 tonnes. So much for the almost incessant mainstream media reports throughout 2014 of a collapse in the Chinese gold market!……………………………………….Full Article: Source

Silver price in 2015: Better the devil you know

Posted on 07 January 2015 by VRS  |  Email |Print

What happened in 2014 -Silver had everything going for it in 2014. Apart from receiving a shot in the arm from Indian gold import curbs and becoming real cheap versus the yellow metal, the silver price was supposed to be boosted by rising fabrication demand.
Chinese imports were surging as silver used in solar panels more than made up for decline in the photographic industry. And batteries were on everybody’s brains from Tesla gigafactories in the US to giant electricity storage programs in China………………………………………..Full Article: Source

Nickel Posts Biggest Two-Day Rally in a Month on China’s Outlook

Posted on 07 January 2015 by VRS  |  Email |Print

Nickel prices climbed, capping the biggest two-day rally in a month, on speculation that increased economic stimulus will boost demand in China, the world’s biggest user of industrial metals.
China is accelerating 300 infrastructure projects valued at 7 trillion yuan ($1.1 trillion) this year as policy makers seek to shore up growth that’s in danger of slipping below 7 percent, said people familiar with the matter. In the second half of 2014, nickel dropped 20 percent amid concern that growth in the Asian nation was slowing………………………………………..Full Article: Source

US oil price falls below $50 on supply glut fears

Posted on 06 January 2015 by VRS  |  Email |Print

The US oil price fell below the symbolic threshold of $50 a barrel for the first time since April 2009, before finishing the day at $50.05. The price of Brent crude also fell on Monday, dipping 6% to $53 a barrel.
The price of both Brent crude and US oil, known as West Texas Intermediate crude, have now lost more than half of their value since mid-2014. Investors are worried that combination of a global supply glut and weak demand could cause prices to tumble further………………………………………..Full Article: Source

Gold price jumps $1,200

Posted on 06 January 2015 by VRS  |  Email |Print

Gold made a bold move higher on Monday as fears of new eurozone crisis and a fresh slide in the price of oil caused a huge sell-off on Wall Street. In late afternoon trade on the Comex division of the New York Mercantile Exchange gold for February delivery was changing hands for $1,203.20 an ounce, up $17.00 or 1.4% from Friday’s close.
Gold’s gains in solid post-holiday trading volume also came into the teeth of a stronger US dollar which hit the highest level since November 2005 against the currencies of major US trading partners………………………………………..Full Article: Source

Tin Outlook 2015: Reduced Chinese Supply Could Help Prices

Posted on 06 January 2015 by VRS  |  Email |Print

The last two years have promised much for the price of tin , and while the metal didn’t live up to the hype expected in 2014, 2015 could prove to be the year that changes. Tin hit a 15-month low of $19,000 per tonne during October, according to Reuters, and in November it was competing with copper and lead to be the worst performer of the year.
Despite that disappointment, experts throughout the industry are once again rallying behind tin for the coming year. While recognizing that tin has hit new lows in recent months, Barron’s reported recently that the metal is set for a turnaround in 2015. Analysts predict Indonesia and China will have a harder time mining tin due to declining ore grades; meanwhile, demand is set to increase thanks to the expanded use of tin in new electronic products………………………………………..Full Article: Source

What Will 2015 Have In Store For Commodities Prices?

Posted on 06 January 2015 by VRS  |  Email |Print

If you are a miner with a product to sell, or even if you’re an explorer simply hoping to have a product to sell one day, there seems little doubt that 2015 is opening on a fairly downbeat note. The gold price remains hidebound at under US$1,200 per ounce, silver is correspondingly weak, platinum remains an underperformer in spite of the supply side shocks of the previous year, and the base metals, with one or two exceptions, are all subject to the effects of a slowdown in the rate of Chinese growth.
According to the latest estimates, China is likely to book growth of around 7.4 per cent for 2014, the slowest rate recorded since 1990. That, said commentary published in the Daily Telegraph today, marks “a turning point for the global commodities industry as a whole”………………………………………..Full Article: Source

Top Five Factors Affecting Oil Prices In 2015

Posted on 05 January 2015 by VRS  |  Email |Print

As we ring in the New Year, let’s take stock of where we are at with the oil markets. 2014 proved to be a momentous one for the oil markets, having seen prices cut in half in just six months. The big question is what oil prices will do in 2015. Oil prices are unsustainably low right now – many high-cost oil producers and oil-producing regions are currently operating in the red.
That may work in the short-term, but over the medium and long-term, companies will be forced out of the market, precipitating a price rise. The big question is when they will rise, and by how much. So, what does that mean for oil prices in 2015? It is anybody’s guess, but here are the top five variables that will determine the trajectory of oil prices over the next 12 months, in no particular order………………………………………..Full Article: Source

The crude reality of declining crude oil prices

Posted on 05 January 2015 by VRS  |  Email |Print

The crashing price of oil, which dominated the world of energy in the last six months, and promises to stay with us for much of 2015, has brought cheers to American consumers and tears to the oil tsars of Russia, Iran and Venezuela in particular. If the price of oil remains in the neighborhood of $60 per barrel (bbl) for much of this year, the economic impact on Russia, Iran, Venezuela and maybe Iraq, Algeria, Nigeria and Libya could be ruinous.
The sharp decline in oil revenues could force both Russia and Iran to review and maybe reduce their financial and material support for the Assad regime in Syria. Some optimists speculated that the crude reality brought about by the changing energy landscape may force Iran to show more flexibility in its nuclear negotiations with the P 5 + 1 in return for a quicker process of sanction relief………………………………………..Full Article: Source

Will you buy gold in 2015 as prices projected to come down?

Posted on 05 January 2015 by VRS  |  Email |Print

The yellow metal market witnessed wide fluctuations in price in 2014. In the New Year, investors can look forward to relatively lower gold price in the international market, as some of the biggest gold investors and gold reserve holders may sell the metal to tide over current financial pressure from lower oil prices.
Leading gold and jewellery investors and traders said the price fluctuation in 2014 and the lower gold prices by the year-end is a welcome trend and gold price may continue to remain low in the New Year. Gold jewellery retail sales in Dubai will increase by at least 25 per cent, due to the lower gold prices, but tourists from Russia may not be buying gold as they used to do in the past………………………………………..Full Article: Source

Gold outlook: Prices could recover in 2015

Posted on 05 January 2015 by VRS  |  Email |Print

The fundamentals of the global gold market could point to modestly higher prices in 2015, according to a commodities analyst. Victor Thianpiriya, commodity strategist at ANZ Bank, expects gold prices to average around $1,238 per ounce for 2015, an increase of over 3.5% from 2 January’s spot price, which hovered at $1,194.10 at midday.
Thianpiriya, in ANZ’s 2015 outlook report, published last month, also said the Australian bank expects Chinese demand for physical gold to remain consistent in 2015, but that prices needed to move up to attract new buyers to the market place………………………………………..Full Article: Source

Commodities see longest losing streak in 23 years

Posted on 02 January 2015 by VRS  |  Email |Print

Global commodity prices marked a fourth straight annual decline in 2014 in their longest losing streak in 23 years, as lingering concerns about global economic growth battered appetite for raw materials, while producers didn’t hold back supplies and worsened a glut.
Brent crude oil led the broader fall in demand by hitting last year its lowest since 2008, gold dropped for a second straight year for the first time since 1998, copper capped the worst losses in three years, iron ore hit a five-year trough and some farm items were hovering around their meanest since 2009, as any credible sign of a demand recovery remained elusive. Despite rock-bottom interest rates in the US, the dollar stayed strong last year, making imports of raw materials less attractive to users of other currencies and further weighing on demand………………………………………..Full Article: Source

Falling global oil prices: Key economic issue for 2015

Posted on 02 January 2015 by VRS  |  Email |Print

The coming Year of the Sheep will no doubt be an interesting one, filled with a lot of uncertainties. Collapsing oil prices are a new wild card that has just been introduced into an already weak global economy — a development that likely will shape what happens in 2015.
Looking back, oil prices for much of the past decade have been high — at about US$100 per barrel since 2010 — largely because of rising oil consumption in countries such as China and geopolitical conflicts in major oil nations. As oil production was tight compared to high demand, prices increased………………………………………..Full Article: Source

Oil price to “bounce back” in 2015

Posted on 02 January 2015 by VRS  |  Email |Print

The oil price is expected to “bounce back” from five and a half year lows this year – but North Sea activity will continue to decline, energy policy experts have predicted. Energy economics consultancy CEBR Energy said that the recent fall in oil prices “overshot” last year as Opec maintained production in the face of increasing US shale supplies.
On New Year’s Eve, oil prices fell below $56 a barrel to reach its lowest level since May 2009. Howard Archer, Chief UK Economist at IHS Global Insight, has predicted that oil will average $66 per barrel over 2015………………………………………..Full Article: Source

What’s next for OPEC as lower oil prices extend into 2015?

Posted on 02 January 2015 by VRS  |  Email |Print

The oil price decline of 2014 upended the geopolitical chessboard. Worth watching in 2015 will be who can recover and dominate play — OPEC, Vladimir Putin or U.S. shale drillers.
Oil’s international benchmark price dropped as much as 49 percent in 2014. Those looking for a quick rebound may be disappointed, as world consumption growth slowed to the least since 2009, U.S. companies pumped more than they have since the 1980s and a price war broke out among members of the Organization of Petroleum Exporting Countries………………………………………..Full Article: Source

Gold price outlook: 2015 could end on a strong note

Posted on 02 January 2015 by VRS  |  Email |Print

Gold prices could be set for a strong breakout in the second half of 2015, according to a commodities analyst. Ole Hansen, head of commodity strategy at Saxo Bank, is slightly more optimistic on the gold market for 2015 compared with other analysts.
Hansen told Kitco News that the precious metal could end 2015 around $1,250 an ounce. But prices could struggle in the short term and could even break below the 2014 lows in the coming months, he said. Hansen urged investors not to rule out gold’s safe-haven investment appeal. Safe-haven demand could help the gold market in early 2015 as both the Russian and European economies are in dire straits………………………………………..Full Article: Source

Asian Investors Need To See Higher Gold Prices in 2015 Before They Buy More - ANZ

Posted on 02 January 2015 by VRS  |  Email |Print

Chinese demand for physical gold is expected to remain consistent in 2015, but prices need to move higher to attract new buyers to the market place, according to a commodity analyst from ANZ Bank. Although volatility has been high in the last few months, gold prices are hovering near unchanged levels from where they started in 2014.
After a year of stabilization, investors need to be confident that prices are on the rise before they jump back into the marketplace, said Victor Thianpiriya, commodity strategist at the Australian bank. He added that the fundamental picture of the gold market could point to modestly higher prices in 2015………………………………………..Full Article: Source

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