For the most part, financial market participants have few qualms about the markets when prices are rising. This is because most investors are long in the market and make money when market levels increase.
Commodity markets are a bit more complicated because although rising prices means greater profits for the underlying owners of those commodities, for many companies and underlying customers, it means costs have grown more expensive………………………………………..Full Article: Source

Commodity traders have raised concerns regarding the latest amendments to new commodities trading rules which could impose stringent limits on positions. The amendments are contained in the latest text of the European Parliament’s version of the markets in financial instruments directive.
The European Commission’s Mifid text would also allow the European Securities and Markets Authority to impose limits but only under extreme circumstances………………………………………..Full Article: Source

After a lackluster 2011, 2012 is expected to be good for commodity investors. This was forecasted by Barclays Capital in its annual survey of institutional investors on February 27. The study found that commodities were valued as a way to diversify risk and generate positive returns in a time of economic uncertainty.
The study found that the attraction to certain commodities was not universal, so this article will address the best expected performers for 2012………………………………………..Full Article: Source

As gas prices continue to maintain their high levels, consumers are growing tired of surrendering their hard-earned money at the pump. But a break in gasoline prices may not be on the horizon, as the U.S. already pays well below the average of a number of other developed countries around the globe.
And if history is any indicator, gas prices will continue to rise until a figure like $9 per gallon is just the norm; it may sound far fetched, but it also doesn’t seem like that long ago that you could get a gallon of gas under $2………………………………………..Full Article: Source

There’s a widespread fear that the trend in commodity prices can only be up. The state of the natural gas market, however, suggests a reversion to an older mean–of permanently falling prices in real terms.
The commodity bull case rests with a perception that there’s a limited amount of raw stuff. And the low-hanging fruit has been plucked. In other words, the most easily accessible commodities have been dug or pumped out of the ground and now the world’s left with lower grade, harder to extract stuff………………………………………..Full Article: Source

OPEC is seeking a balance in world oil prices, but political instability rather than production issues are affecting the market price, Iraqi Oil Minister Abdul Kareem Luaibi said on Monday.
Brent crude slipped around $1 on Monday after Iran agreed to resume talks on its disputed nuclear programme, easing fears over a supply disruption, and prices were under pressure on demand growth concerns………………………………………..Full Article: Source

Iran’s deputy oil minister says the country has become the first member state of the Organization of Petroleum Exporting Countries (OPEC) to manufacture indigenous gas turbines.
Mohammad-Reza Moqaddam said Monday that gas turbines are among high-tech equipment whose technology is monopolized by a handful of European and American companies………………………………………..Full Article: Source

Crude oil production by the Organisation of Petroleum Exporting Countries (OPEC) rose by 120,000 barrels per day (bpd) in March, a survey by industry experts Platts revealed.
Total OPEC oil production is expected to have hit 31.39 million bpd in March, up from 31.27 million bpd in February………………………………………..Full Article: Source

Gold traders are bearish for the first time this year after the Federal Reserve signaled it may refrain from more monetary stimulus and jewelers in India, the world’s biggest bullion market, shut to protest a new tax.
Fifteen of 29 analysts surveyed by Bloomberg expect prices to decline next week and five were neutral, the highest proportion since Dec. 30. Imports by India may have plunged as much as 81 percent in March and could drop 40 percent in the second quarter, the Bombay Bullion Association said April 2. Indian jewelers, who sell more gold than Australian and U.S. mines produce in a year, were closed today for a 20th day………………………………………..Full Article: Source

“We still like gold” even after the metal fell last week to an 11-week low, said Morgan Stanley in a weekly commodity research note. “We believe that the recent weakness in gold is a good entry point as some elements of the recent selling pressure appear to be at odds with the FOMC’s still-dovish position,” Morgan Stanley added.
“As the Fed continues believing that long-run inflation will likely remain subdued, it has reaffirmed a commitment to accommodative monetary policy, as expressed by zero nominal rates, negative real rates and Operation Twist. These developments will likely support gold prices,” they continued………………………………………..Full Article: Source

Barclays Capital describes the macroeconomic backdrop as bullish for gold, the fundamentals as bearish and investor flows and technicals as neutral. While a low interest-rate environment remains, a third round of U.S. quantitative easing is not imminent, which has pressured gold in recent weeks.
Barclays doubts that Friday’s softer-than-forecast U.S. jobs report will prompt renewed action at the April meeting of U.S. Fed policy-holders, but it says the door to further quantitative easing does remain “ajar.”……………………………………….Full Article: Source

Financial Repression seems to be the buzz phrase among financial commentators recently, but no-one’s forcing the investor to succumb, while gold investment is the traditional way of avoiding it.
All of a sudden, everyone’s talking about financial repression - the capture and torture of domestic savers with below-inflation rates of interest, so that banking and government debt shrinks in real terms………………………………………..Full Article: Source

Gold demand was less than expected today here when the bullion market reopened after the 21-day strike, jewellers said.
“We expected the demand to be very high as the shops were closed due to the strike. However, the footfalls were much fewer than our expectations,” Kumar Jain of Umedmal Tilokchand Zaveri said………………………………………..Full Article: Source

India’s gold imports are expected to resume as jewelers restock and shoppers return after the end of a 20-day strike protesting new taxes on bullion.
“All shops have reopened,” said Prithviraj Kothari, president of the Bombay Bullion Association. “Gold demand should pick up. In April and May [combined], imports will be around a 100 [metric] tons.”……………………………………….Full Article: Source

Capitalizing on booming demand for precious metals, two privately held companies have combined to establish the largest recycler of gold and silver in North America.
The merger of NTR Metals of Dallas and Ohio Precious Metals, of Jackson, Ohio, has formed a company that will produce about 10% of the world’s recycled gold, according to Bill LeRoy, president of Ohio Precious Metals………………………………………..Full Article: Source

Demand for commodities of all kinds is ramping up at breakneck speed. And despite fears of a slowdown in China’s economic growth, Dr. Copper is leading the rise in commodities prices.
Copper earned that nickname because it’s thought to be a bellwether on the health of the global economy, thanks to its numerous economic uses………………………………………..Full Article: Source

After years in oversupply, zinc market fundamentals are finally beginning to turn around. With this turn, the base metal is garnering the attention of a wide range of individuals and is beginning to expand outside of non-traditional zinc mining.
While most resource stories these days are of supply being unable to keep up with swelling demand, zinc’s story is about disappearing supply as much as growing demand………………………………………..Full Article: Source

The Defense Department would intervene in case of a shortage of rare earth materials for defense electronics and motors, the Pentagon official responsible for industrial policy, said.
“If we see restrictions, we would look to activate one of many measures, including contingency contracting” that lets U.S. defense contractors buy materials on behalf of the Pentagon, Brett Lambert, the U.S. deputy assistant secretary of defense for manufacturing and industrial base policy, said……………………………………….Full Article: Source

A coalition of consumer and public interest groups last week called on Congress to ban commodity index funds and exchange-traded commodity funds because they say these vehicles have helped fuel higher energy prices, according to a Reuters report.
The target of the group’s collective ire was their perception that Wall Street speculation has artificially jacked up oil and gasoline prices. Their complaints are part of the ongoing debate about whether the $300 billion that institutional investors have put into the commodity markets during the past decade has boosted volatility and created price spikes………………………………………..Full Article: Source

A U.S. senator is drafting legislation that would ban commodity index funds and ETFs on concerns the passively managed vehicles are driving oil and gasoline prices higher, according to a report.
Supply worries in the Middle East and lower refinery output are partly responsible for pushing average gas prices to $3.93 a gallon, a record for this time of year. Gas prices could top $4 a gallon as early as this week, the Associated Press reports………………………………………..Full Article: Source

Exchange traded funds provide the average retail investor with the opportunity to easily access the commodities space. As the April 15 tax deadline approaches, investors should take the time to look over some tax consequences associated with commodity funds to minimize any potential pitfalls.
Commodity ETFs come in two basic categories – funds that hold the physical commodity and those that track futures contracts……………………………………….Full Article: Source

With the Federal Reserve pledging to keep interest rates ultralow and geopolitical risk running high, investors seeking inflation hedges continue to pour money into commodities such as gold and oil. And exchange-traded funds, which are highly liquid and easily accessible, are the vehicle of choice.
The wildly popular SPDR Gold Trust (GLD), for instance, now holds about $70 billion in assets, making it second in size only to the SPDR S&P 500 (SPY) among ETFs………………………………………..Full Article: Source

Hedge funds reduced bullish bets on commodities for a second consecutive week as the Federal Reserve signaled it may refrain from more monetary stimulus, increasing concern that growth will slow and curb demand for raw materials.
Money managers lowered net-long positions across 18 U.S. futures and options by 2.8 percent to 1.1 million contracts in the week ended April 3, data from the Commodity Futures Trading Commission show………………………………………..Full Article: Source

To feed Asia’s growing demand for commodities, India’s Financial Technologies group embarked on an ambitious project—to establish a new pan-Asian exchange, focusing on select commodities and currency derivatives.
Singapore Mercantile Exchange, one of the world’s newest, went live in August 2010. Though less than 2 years old, the exchange witnessed close to one million contracts traded in the first quarter of this year, valued at almost $30 billion, compared with about 37,000 contracts traded a year earlier………………………………………..Full Article: Source

Brazilian President Dilma Rousseff on Monday expressed concern to President Barack Obama that the easy money policies of developed countries threaten the growth of emerging economies like Brazil.
“Such expansionist monetary policies… ultimately lead to a depreciation in the value of the currencies of developed countries, thus impairing growth outlooks in emerging countries,” she said………………………………………..Full Article: Source

The Swiss franc breached the 1.20 limit versus the euro early in Asian trading today, the second time the barrier has been crossed since Switzerland’s central bank introduced the currency cap on Sept. 6.
The franc reached the strongest level since the Swiss National Bank established the limit to protect exports after investors seeking a haven from the euro-area turmoil drove the currency to a record 1.00749 per euro………………………………………..Full Article: Source