Funds boosted bets on rising commodity prices by the most in almost a year on speculation that the global economic recovery will prove resilient.
Speculators raised their net-long positions in 18 commodities by 16 percent to 1.26 million futures and options contracts in the week ended July 19, government data compiled by Bloomberg show. That’s the biggest gain since early August. Bullish silver holdings climbed to the highest since May 3……………………………………….Full Article: Source

While another release of oil from strategic stockpiles isn’t imminent, analysts say a jump above $125 a barrel in Brent crude will pave the way for a sequel to this summer’s surprise sale.
The International Energy Agency said last week that it is “not now” calling for further action after the group of 28 oil-consuming countries in June decided to inject 60 million barrels of oil held in strategic reserves into the market……………………………………….Full Article: Source

Strange as it may seem, European leaders are having trouble persuading the markets they have solved their immediate debt crisis and safeguarded the euro by handing critically ill Greece a couple of Aspirins. Similarly, a gridlocked Washington can’t seem to assuage concerns about debt ceilings, soaring deficits and imminent rating cuts.
But by far the biggest worry on most investors’ screens these days is a slowdown in inflation-rattled China and the havoc this would wreak on the fragile global recovery……………………………………….Full Article: Source

Gold fever is gripping Asian investors and could spread to central banks as global growth uncertainties tarnish the appeal of other assets, putting bullion on course for more gains but also provoking fears about supply.
Spot gold surged more than $100 in 11 straight days to Tuesday, its longest winning streak in four decades, hitting a record $1,609.51 an ounce, as debt default fears in theUnited States and Europe drove investors to seek safety……………………………………….Full Article: Source

China, which became the world’s largest gold producer since in 2007, retained its position again in 2010 by mining 340.88 tonnes, up 8.57 percent year on year, the China Gold Association said Sunday.
Increases in gold output will help China hedge against financial risks and inflation, as well as maintain economic security, the association said……………………………………….Full Article: Source

If there is an agreement reached by Congress and the debt ceiling is raised Gold and Silver will go up. If there is no agreement reached by Congress and there is a default, Gold and Silver will go up but in a parabolic move.
Either way Gold and Silver will continue to rise as the U.S. and European economies continue to debase their currencies by the printing of fiat paper money to try and pay off their debt with paper that is of a lesser value……………………………………….Full Article: Source

Legendary commodity investor and Quantum Fund co-founder Jim Rogers calls for a long term bull market in silver.
“The world is having shortages develop of nearly every metal,” Roger says. Silver prices are likely to go up substantially over the next decade, Rogers predicts and he says he will buying any dips that are yet to arrive……………………………………….Full Article: Source

If you’re still bearish on long-term silver prices, you’d better reconsider your stance. Dollar-denominated Chinese silver futures were scheduled to begin trading on the Hong Kong Mercantile Exchange early today (Friday). This development will grant Asian investors direct access to the metal, and will blunt the US dominance in silver-bullion trading.
It’s also highly bullish for long-term silver prices………………………………………Full Article: Source

Analysts have boosted gold price forecasts for this year and next due to persistent concerns over the euro zone debt crisis, and fresh worries over the U.S. recovery and debt.
Reuters’ biannual poll of precious metals price forecasts found that just over half of the 52 respondents who returned gold views expect prices to average $1,500 an ounce or more this year, against just over one in five who responded to a similar poll conducted in January……………………………………….Full Article: Source

Platinum surplus which witnessed a sharp growth in 2010 at one million ounces is expected to witness another sizeable gross surplus in 2011, according to an analysis by GFMS Ltd. The surplus growth will take place partly as mine output is set to rise, due mainly to forecast gains in North America, and both jewellery and autocatalyst scrap are also forecast to increase, GFMS report said.
Palladium which witnessed a return to large gross deficit estimated at 550,000 ounces in 2010 will witness an increase in prices to $975 before the year is out, GMFS report said……………………………………….Full Article: Source

When it comes to investing in precious metals, most investors tend to focus on gold and silver.
With gold in the midst of a multi-year bull market, and trading at $1,600 and ounce, the yellow metal gets most of the media attention. Headlines like ‘Gold to Hit $2000 an Ounce’ and ‘Invest in Gold to Cash in on US Dollar Demise’ have appeared almost relentlessly over the past couple of years. Rising gold prices have been less about economic fundamentals, such as rising demand, and more about inflation worries and a US dollar hedge……………………………………….Full Article: Source

China, the world’s largest steelmaker and iron ore consumer, has set a target of dramatically increasing ore imports from Chinese-invested resources in the steel industry’s 12th Five-Year Plan (2011-2015), an industry official said.
Iron ore imports from Australia, Brazil and India accounted for 62.3 percent last year……………………………………….Full Article: Source

Look out Vale and Rio Tinto, China’s government wants to secure its future iron ore demand from mines it owns, rather than pay top dollar to the big three foreign iron ore traders, including Australia’s BHP Billiton.
Li Xinchuang, deputy secretary-general of China Iron & Steel Association, told China Daily on Monday that the country will only be able to break the grip of the three major global miners if it gets half of its overseas ore requirements from Chinese-invested mines……………………………………….Full Article: Source

Large managed funds have reduced their net long positions in copper, according to data released by the US Commodity Futures Commission. Funds added 1,870 long positions against 1,895 shorts and reduced their net longs from 27,030 a week earlier to 27,005 in the week ending July 19.
This change ended a 3 week bullish streak. The funds have been bullish in Copper in six of the past 8 weeks……………………………………….Full Article: Source

Two largest precious metals ETPs benefit from surge of investor interest. Insatiable investor demand for precious metals exposure boosted commodity-related, exchange-traded product flows over the week ending July 21. The overall commodity ETP space saw inflows of $1.3 billion — the same as the week before — helping send total assets in the space to $173 billion.
Precious metals ETPs led with $869 million in inflows, followed by broad market (multicommodity) and energy products, with inflows of $236 million and $204 million, respectively……………………………………….Full Article: Source

The Kuwaiti gold market is currently dominated by exchange of old pieces for new ones of newer designs as customers shy away from new purchases amid soaring prices, a weekly specialized report indicated.
The Zomoroda weekly report said new purchases are mostly in the category of small bullion as customers consider gold a good investment and the best option against the threat of inflation……………………………………….Full Article: Source

The East African Community (EAC) and the US-based Nicolas Berggruen Institute are planning to establish a regional commodity exchange market which among others is to save farmers from price manipulation resulting into increased incomes.
Commodities exchanges usually trade in futures contracts on commodities, such as trading contracts for the farmer to sell maize to a particular buyer in a specified month……………………………………….Full Article: Source

The turnover of the commodity futures market rose by 56 per cent to Rs 38,29,230 crore in the first quarter of the 2011-12 fiscal on the back of robust trading volumes in gold and silver, the Forward Markets Commission (FMC) said.
The turnover stood at Rs 24,55,987 crore in the April-June period of the previous year, the FMC said in a statement……………………………………….Full Article: Source

South Korea’s won and Malaysia’s ringgit declined, while most Asian currencies were little changed after gaining last week, as the threat of a U.S. debt default unsettled financial markets.
The Bloomberg-JPMorgan Asia Dollar Index retreated from a 14-year high reached on July 22 after U.S. Treasury Secretary Timothy F. Geithner said yesterday he hoped lawmakers can agree to limit debt to meet an Aug. 2 deadline………………………………………Full Article: Source

As U.N. talks keep failing to agree how to raise money to protect forests, private investors are testing a trade in credits to slow the deforestation that emits as much carbon as all the world’s cars, ships, trucks and planes.
BNP Paribas is one of a handful of financial institutions and investment funds entering the risky but potentially lucrative market for “credits” in the Reducing Emissions from Deforestation and Forest Degradation program, or REDD……………………………………….Full Article: Source