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Commodities Briefing - Archive | August, 2013

Jim Rogers: US war with Syria would be bullish for commodities

Posted on 30 August 2013 by VRS  |  Email |Print

It’s looks likely that the United States will launch a military attack against Syrian government forces, and that would boost commodity prices, says legendary investor Jim Rogers, chairman of Rogers Holdings.
He told Reuters he owns oil and gold. “If there is going to be a war, and it sounds like America’s desperate to have a war, they’re going to go much, much higher,” Rogers said, according to the news service. “Stocks are going to go down, some of the markets are already going down. Commodities are going to go up.”……………………………………….Full Article: Source

Jim Rogers expects higher gold prices, and Marc Faber does too!

Posted on 30 August 2013 by VRS  |  Email |Print

It’s not a surprise to hear that billionaire investor Jim Rogers, who’s usually bullish on commodities, expects higher prices for gold, but The Gloom, Boom & Doom Report’s Marc Faber said he does too.
Marc Faber, also known as “Doctor Doom,” told HardAssetsInvestor in an interview published Wednesday that “looking at how debt will continue to increase and how central banks will continue their monetization not only in the U.S. but on a worldwide scale, I assume the price of gold will trend higher.”……………………………………….Full Article: Source

Index funds add bullish commodity positions in July

Posted on 30 August 2013 by VRS  |  Email |Print

Index funds increased their bullish exposure to commodities in July for the first time in three months amid signs of a better economy and higher oil and gold prices, Commodity Futures Trading Commission data showed on Thursday.
The value of net-long index fund investments in U.S. commodities rose by nearly $9 billion, or 5 percent, to $193.4 billion at the end of last month, according to the CFTC’s monthly Index Investment Data report………………………………………..Full Article: Source

Oil at $150?

Posted on 30 August 2013 by VRS  |  Email |Print

Oil could briefly spike to $150 per barrel or more if Syria’s supporters seek to punish the U.S. and its allies for a military strike against it. The potential for U.S. intervention in Syria has sent international bench mark Brent crude to a six-month high, and analysts expect prices to continue to head toward $120 a barrel and above—but the ceiling could be much higher if something happens to disrupt global oil supplies.
Societe Generale analysts laid out a case for Brent crude, the international benchmark, to spike temporarily to $150 per barrel………………………………………..Full Article: Source

Will oil price rise choke off stock rally?

Posted on 30 August 2013 by VRS  |  Email |Print

A barrel of oil for $150. Ouch. It’s not out of the realm of possibilities if the USA’s expected military strike at Syria reverberates through the Mideast, sparking a larger supply disruption in the volatile oil-producing region.
That market call, authored by Michael Wittner, an oil analyst at Société Générale, received its fair share of attention on Wall Street, where anxiety is running high as geopolitical risks rise………………………………………..Full Article: Source

OPEC to cut oil exports as consumption wanes, Oil Movements says

Posted on 30 August 2013 by VRS  |  Email |Print

The Organization of Petroleum Exporting Countries will reduce shipments through to mid-September as refiners carry out seasonal maintenance, tanker-tracker Oil Movements said.
The group, which supplies about 40 percent of the world’s oil, will cut exports by 220,000 barrels a day, or 0.9 percent, to about 23.59 million barrels a day in the four weeks to Sept. 14 from the period to Aug. 17, the researcher said today in an e-mailed report. The figures exclude two of OPEC’s 12 members, Angola and Ecuador………………………………………..Full Article: Source

IEA says oil markets well supplied, no need for action

Posted on 30 August 2013 by VRS  |  Email |Print

The International Energy Agency said on Thursday oil markets were currently well supplied and did not warrant any action by the West’s energy watchdog despite a recent spike in prices.
Supply outages from Libya and concerns the escalating situation in Syria could spill into other Middle East countries has pushed up prices for international benchmark Brent by nearly $8 this month to over $115 a barrel………………………………………..Full Article: Source

Global crude oil market is adequately supplied, IEA says

Posted on 30 August 2013 by VRS  |  Email |Print

The global oil market is adequately supplied and doesn’t require the release of emergency stockpiles, according to the International Energy Agency. The agency is monitoring the market and “stands ready” to respond if there’s a major supply disruption, the Paris-based adviser to 28 energy-consuming nations.
“The IEA is obviously concerned about the harmful effects of high oil prices on the global economic recovery,” Greg Frost, a Paris-based spokesman, said in an e-mailed statement. “Prices at these levels cause hardship both in IEA countries and especially emerging economies.”……………………………………….Full Article: Source

Worldwide diamond consumption likely to surge more than 60pct by 2020

Posted on 30 August 2013 by VRS  |  Email |Print

According to the most recent research report titled “2012 Global Diamond Industry Report” released by the global consulting firm Bain & Company, global diamond consumption is likely to record a compounded annual growth rate of 6%. The worldwide diamond consumption may surge by more than 60% by the end of this decade.
According to the report, the U.S. is far and away the world’s largest diamond market. The U.S. market revenues are more than three times the revenues of the No.2 market China and the No.3 market India. Bain & Company notes that women in the U.S. continue to crave diamonds, but popularity of diamond engagement rings among younger consumers is marginally slowing down………………………………………..Full Article: Source

Gold prices could skyrocket to $3,500, in wild unorthodox estimate from Citi analyst

Posted on 30 August 2013 by VRS  |  Email |Print

Gold prices could climb to $3,500 per ounce in the next few years, well beyond double the current market price of $1,411, according to an unorthodox estimate by Citigroup Inc analyst Tom Fitzpatrick.
Fitzpatrick argues on technical and historical grounds that the long-term trend for gold is strongly bullish. “We believe we are back into that track where gold is the hard currency of choice, and we expect for this trend to accelerate going forward,” Fitzpatrick told the blog. “We still believe that in the next couple of years we will be looking at a gold price of around $3,500.”……………………………………….Full Article: Source

Why India’s gold has outperformed global prices

Posted on 30 August 2013 by VRS  |  Email |Print

Gold price hits fresh all-time high of Rs 34,622 per ten grams in futures trade on Wednesday on heavy buying as rupee plunged to its new record low of 68.75 against the US dollar.
Despite recovering about USD 240 an ounce, or more than 20 percent, since hitting a near three-year low of USD 1,180.71 in late June, gold prices are still down 15 percent so far this year in international market. On the contrary, the yellow metal, which plunged to a low of Rs 25,000 in mid-April, is at a record high in India………………………………………..Full Article: Source

HSBC cuts gold allocation on outlook for weaker economic growth

Posted on 30 August 2013 by VRS  |  Email |Print

HSBC Bank Plc reduced gold’s weighting in its strategic portfolio, citing an outlook for weaker economic growth and slow inflation. HSBC lowered its bullion allocation to 4 percent in its three-year-view portfolio, compared with 7 percent in July, Fredrik Nerbrand, the bank’s London-based global head of asset allocation, said.
It also gave commodities a smaller allotment. HSBC left gold’s weighting unchanged at 5 percent in its six-month-view tactical portfolio………………………………………..Full Article: Source

Precious metals & miners flash short-sell signal

Posted on 30 August 2013 by VRS  |  Email |Print

It has been a bumpy ride for precious metal investors over the past couple of years and unfortunately I do not think it’s over just yet.
The good news is that the bottom has likely been put in for gold, silver and gold miners BUT the recent rally in these metals and miner looks to be coming to an end. While we could see another pop in price over the next week or so the price, volume and momentum seem to be stalling out………………………………………..Full Article: Source

The world’s 10 largest copper expansion projects

Posted on 30 August 2013 by VRS  |  Email |Print

Global copper supply disruptions increased in the second quarter of 2013 as a result of the Bingham Canyon slide and the closure at Freemont’s Grasberg. But despite these and other disruptions, 2013 supply growth remains positive and is expected to remain so throughout 2013, with surplus widening in 2014.
A study by Macquarie Research expects global copper mine supply growth in 2014 to approach 7% YoY, the highest rate of supply growth in a decade………………………………………..Full Article: Source

Base metal ETFs for commodity sector exposure

Posted on 30 August 2013 by VRS  |  Email |Print

Industrial metals are showing strength as demand from China and the Eurozone pick up steam. Exchange traded funds that track this segment of the market have rebounded over the past month.
“The increased chances of the Fed curtailing stimulus have led to uncertainty in the market. Investors are thinking that the equity markets have reached the highest level and could slump, or stay range bound, from here. As such, they are moving to commodities, which look cheaper at current levels,” Zacks Equity Research wrote in a recent article………………………………………..Full Article: Source

Oil ETFs jump on Syria turmoil

Posted on 30 August 2013 by VRS  |  Email |Print

Crude oil prices rebounded to the triple-digit mark at the start of the second half of the year after being stuck in a relatively tight range for much of the first half.
The commodity gained luster from encouraging economic data from the U.S., China and Euro zone as well as supply disruptions in the North Sea, Egypt and . Additionally, the commodity benefitted from the minutes of the latest Fed meeting, which suggested that QE3 tapering may not start soon………………………………………..Full Article: Source

Outlook still gloomy for the coffee ETF

Posted on 30 August 2013 by VRS  |  Email |Print

Broad commodities have made an impressive comeback after a steep fall earlier this year, and have caught enough investor interest of late. While the commodities in the precious and industrial space have rebounded from their lows or are even moving higher, soft commodities, in particular coffee, are still plunging.
In fact, the iPath Dow Jones-UBS Coffee Subindex Total Return ETN (JO) has been down more than 8% in the past one month, underperforming the broad PowerShares DB Agriculture Fund (DBA) and PowerShares DB Commodity Index Tracking Fund (DBC) by wide margins………………………………………..Full Article: Source

Bank of China sets up onshore commodities trading unit

Posted on 30 August 2013 by VRS  |  Email |Print

The international arm of Bank of China has set up a commodities trading unit on the mainland as it looks to beef up its presence in the sector, a senior bank official said.
Chinese regulations prohibit banks from trading physical commodities, with the exception of gold. Therefore Bank of China, the country’s fourth largest lender by market value, used its overseas subsidiary to apply for a trading license………………………………………..Full Article: Source

Here’s why Indonesia’s currency woes won’t go the way of India’s

Posted on 30 August 2013 by VRS  |  Email |Print

Despite the dire headlines about the plummeting currencies of Indonesia and India, the crisis in Indonesia will be a much easier one to remedy for several reasons. Here’s why: Indonesia’s economic policies haven’t flip-flopped like India’s.
With the scars of the 1997 Asian financial crisis still front of mind, Indonesia’s government seems determined to avoid the kind of muddled policy efforts that have hobbled India’s economy. As such, Jakarta reacted decisively to the 11% dive in its currency over the past three months………………………………………..Full Article: Source

Brazil’s booming farms reap benefit of weak currency

Posted on 30 August 2013 by VRS  |  Email |Print

Carlos Piassi remembers the reaction from other farmers when he started planting a second annual crop at his farm near Uberlândia, in Brazil’s grain belt. No one believed it could be done given the semi-arid region’s relatively short rainy season and long dry winter.
“If you had said you were going to plant a safrinha [the small harvest] here five years ago you were called crazy,” he says at his farm, Fazenda Campo Alegre. The naysayers were wrong. “The safrinha between last year and this has about tripled,” he said………………………………………..Full Article: Source

Can Brazil’s currency be saved?

Posted on 30 August 2013 by VRS  |  Email |Print

One almost feels sorry for Brazil’s central bank President Alexandre Tombini these days. The man charged with steering the monetary policy of the world’s sixth largest economy has a lot to handle.
The U.S. Federal Reserve has signaled it will finally reduce its quantitative-easing policy, a move that spells the end of the easy money that has helped Brazil’s economy coast for years. This has contributed to an initial blow to the Brazilian real, which last week dropped to its lowest level in 4 1/2 years………………………………………..Full Article: Source

EU narrows down carbon-market overhaul options, climate action commissioner says

Posted on 30 August 2013 by VRS  |  Email |Print

The European Union’s regulatory arm is winnowing down the options for a long-term overhaul of the world’s biggest carbon market and aims to make a decision in the coming months, EU Climate Action Commissioner Connie Hedegaard said.
The European Commission has floated several scenarios to help curb a record glut of emission permits and boost the price of carbon in the bloc’s €54 billion ($72 billion) Emissions Trading System, where prices slumped to an all-time low in April………………………………………..Full Article: Source

China to exempt some commodities imports from licence requirements

Posted on 29 August 2013 by VRS  |  Email |Print

China will do away with licence requirements for imports of some commodities, including refined copper, stainless steel and natural gas, from September 1 as part of broader moves to cut red tape and open up its commodities markets.
Products exempt from the import license requirement also include semi-finished copper products, scrap copper, scrap aluminium, steel, steel products and some agricultural products, according to a statement posted on the Ministry of Commerce website on Tuesday………………………………………..Full Article: Source

The global implications of falling commodity prices

Posted on 29 August 2013 by VRS  |  Email |Print

The decade-long commodity-price boom has come to an end, with serious implications for global GDP growth. And, although economic patterns do not reproduce themselves exactly, the end of the upward phase of the commodity super-cycle that the world has experienced since the early 2000’s dims developing countries’ prospects for continued rapid catch-up to advanced-country income levels.
Over the year ending in July, The Economist’s commodity-price index fell by 16.5% in dollar terms (22.4% in euros) with metal prices falling for more than two years since peaking in early 2011. While food prices initially showed greater resilience, they have fallen more sharply than those of other commodities over the past year. Only oil prices remain high (though volatile), no doubt influenced by the complex political events in the Middle East……………………………………….Full Article: Source

Crude oil prices jump on Middle East fears

Posted on 29 August 2013 by VRS  |  Email |Print

Oil prices surged on Wednesday morning with US crude leaping to a two-year high as investors prepared for a possible western military strike on Syria.
Although Syria is not a major oil producer or transit point, investors fear that western intervention there could spill over into the rest of the region, potentially affecting oil supplies from other producers such as Iraq………………………………………..Full Article: Source

Considering some oil numbers before the inevitable in Syria

Posted on 29 August 2013 by VRS  |  Email |Print

As the likelihood of an attack by Western powers on Syria continues to roil the oil markets, here are a few numbers that we offer as background: Syrian production: It’s about 50,000 b/d. A few years ago, it was about 350,000 b/d.
Days’ cover: This figure is just for OECD nations, which consist of 34 key countries with market economics. Days’ cover is a statistic published by the International Energy Agency — an arm of the OECD — noting how many days of inventories would cover consumption if supply dropped to zero. In the second quarter of this year, days’ cover held by industry stood at 59 days, which is at the high end of recent estimates………………………………………..Full Article: Source

Oil prices rise, but gas is a different story

Posted on 29 August 2013 by VRS  |  Email |Print

Oil prices are spiking on Syria tensions and oil outages across the broader region, but that doesn’t mean gasoline prices will follow suit. U.S. oil prices have soared nearly 8% in the last week alone, touching $112.24 a barrel in overnight trading — their highest level in over two years.
The fear is that Western intervention in Syria over that country’s suspected use of chemical weapons could engulf major oil producing countries in the region such as Iraq or Iran………………………………………..Full Article: Source

OPEC: Iran holding 3rd largest crude reserves in world

Posted on 29 August 2013 by VRS  |  Email |Print

The Organization for Petroleum Exporting Countries (OPEC) in its Annual Statistical Report announced that the volume of Iran’s oil reserves amounted to 154.58bln in 2012, showing an increase of more than 1.8 percent as compared with the figures in the year before.
Venezuela with 297.735bln barrels of crude and Saudi Arabia with 265.85bln barrels precede Iran in the OPEC’ list as the states holding the largest and second largest crude reserves. According to the OPEC report, the world’s crude reserves stood at 1.478211trln in 2012, showing a 0.9 percent increase compared with the preceding year………………………………………..Full Article: Source

OPEC report mentions Iran’s daily crude export over 2.1mln in 2012

Posted on 29 August 2013 by VRS  |  Email |Print

The OPEC announced that Iran has exported over 2.1mln barrels of crude per day on an average basis last year. The value of Iran’s oil export in the said period stood at $101.468, it added. According to oil cartel, Iran was the world’s sixth oil exporter in 2012.
Iran exported 1.839 million barrels of oil per day to Asia, 162,000 barrels to Europe and 101,000 barrels to Africa in 2012, the report said. Earlier this month, Iran’s OPEC Governor Mohammad Ali Khatibi announced that Iran’s crude export has exceeded the figures envisioned in the country’s budget bill………………………………………..Full Article: Source

Gold prices spiral out of control as Rupee tumbles

Posted on 29 August 2013 by VRS  |  Email |Print

Gold prices surged to an all-time high in India on Tuesday as the rupee descended to record lows against the dollar yet again, and safe-haven investment in the yellow metal increased globally.
Gold prices closed at Rs32,585 per 10 gram, up 2.5% from Monday’s levels, according to the Bombay Bullion Association. Prices inched up internationally as well by 1% to $1,421 on worries of rising risk to global growth from expected tapering of quantitative easing in the US starting next month………………………………………..Full Article: Source

Precious metals regain haven appeal amid unrest

Posted on 29 August 2013 by VRS  |  Email |Print

Gold and silver prices rose to their highest levels in several months as the precious metals regained some of their appeal as havens amid the threat of western military action in Syria.
Gold prices touched a fresh three-month high of $1,433.31 a troy ounce while silver hit a four-month high of $25.08, although both metals had given up much of the day’s gains by late afternoon in London………………………………………..Full Article: Source

Gold and silver ratio signals much higher silver prices

Posted on 29 August 2013 by VRS  |  Email |Print

It is natural to compare the current precious metals’ bull market with that of the 70s, since there are many similarities between the two. Below is a comparison which illustrates some of the similarities between the two bull markets:
After the peak and correction, the price eventually went higher to a far greater peak, which in the case of the 70s chart was the end of the bull market. Knowingly, or unknowingly, these similarities are probably the reasons why many think that the gold and silver bull markets ended in 2011, with the peaks in that year………………………………………..Full Article: Source

Why silver prices are headed to $46

Posted on 29 August 2013 by VRS  |  Email |Print

As gold bullion prices declined in the period from April to June of this year, so did silver prices. And just like gold bullion, the bullish case for the white metal’s prices continues to build.
Demand for the white precious metal is not just robust; it is rising. The chart below compares sales of silver coins at the U.S. Mint in the months of January to July of 2012 and 2013. The demand for the precious metal is strong, having risen by 50% in the first seven months of this year compared to the same period a year ago………………………………………..Full Article: Source

Calling next-generation rare earth element investors

Posted on 29 August 2013 by VRS  |  Email |Print

If you thought you had rare earth element mining all figured out, think again. Dr. Anthony Mariano and his son, Anthony Jr., work as geological consultants to many rare earth companies, and say even they have more to learn. But if you’re looking for a sector that will nurture your inner nerd, rare earth elements may be the play for you.
The buzz of the high-demand years was a result of political or economical implications surrounding REEs, which were largely controlled by China. Investors then became interested in REEs. Now the drop in REE prices has changed the game. At this point, investors are not getting as involved, so companies that were attempting to explore potential deposits can’t. You need a budget for that. But a lot of our technology requires the use of REEs………………………………………..Full Article: Source

Three industrial metal ETFs poised to outperform in the months ahead

Posted on 29 August 2013 by VRS  |  Email |Print

Commodities have shown extreme weakness this year while many other sectors have held up quite well. However, recent trends in the space have been encouraging, as most commodities have rebounded from their lows or are even moving higher.
This is especially true with the industrial metals that have attracted investor interest in the past couple of weeks, leading to huge inflows. China, the major driver of industrial metals, is showing signs of stabilizing with strong trade data leading many to feel more bullish on the space………………………………………..Full Article: Source

3 forgotten ways to play mining sector with ETFs

Posted on 29 August 2013 by VRS  |  Email |Print

Broad commodities are showing an impressive comeback after a steep fall earlier this year, and have caught enough investor interest of late. This is particularly true given recent moves in the space, as many metals have been rebounding from their lows or moving higher.
In the precious metal world, gold climbed 13% from its June low while silver gained 14% last week, marking the biggest weekly gain in almost five years. Base metals like copper, aluminum, and zinc are also trending upwards……………………………………….Full Article: Source

Why gold funds could be set for further gains

Posted on 29 August 2013 by VRS  |  Email |Print

In previous three-month periods where gold has lost 24 per cent or more, it has rebounded by an average of 20.7 per cent in the next three months. Gold investors with a high conviction in the asset class were rewarded for their patience this week, following a resurgence in the price of the precious metal.
The commodity first fell sharply in April, when investors began to sell out of it to take advantage of the bull run in equities. The relatively benign level of inflation so far this year also lessened the attractiveness of gold as a hedge………………………………………..Full Article: Source

Canada dollar falls as Syria bets bolster U.S. currency’s appeal

Posted on 29 August 2013 by VRS  |  Email |Print

The Canadian currency weakened as speculation America and its allies will take military action against Syria boosted the U.S. dollar’s appeal as a haven.
Canada’s dollar rallied earlier versus most major peers as crude oil, the country’s largest export, touched its highest level in more than two years amid bets military operations may disrupt Middle East oil supplies. The loonie, as the currency is called, declined against the greenback before data this week forecast to show the U.S. economy expanded in the second quarter while Canada’s contracted in June………………………………………..Full Article: Source

Why India’s currency, the rupee, has plummeted to a record low against the dollar

Posted on 29 August 2013 by VRS  |  Email |Print

If India’s currency were a baseball team it would be a cross between the basement-dwelling Houston Astros and the soon-to-be basement-dwelling New York Mets. Since January the rupee has plunged 20 percent, and in the last three months it’s dropped 13.1 percent, the biggest such decline in nearly 18 years. On Wednesday India’s currency posted its biggest one-day drop ever and now sits at a record low against the dollar.
Inflation is running around 10 percent, the worst of any large economy, and the government now has to pay buyers of its 10-year notes a whopping 8.96 percent interest………………………………………..Full Article: Source

Brazil’s currency intervention: feeding speculation?

Posted on 29 August 2013 by VRS  |  Email |Print

Brazil’s decision to offer up to $40 billion in currency swaps by year-end has been widely praised as a smart way to stabilize its foreign exchange market. The bold move announced last week, which doubles the amount of outstanding currency swaps in Brazil, has put a lid on the real’s sharp depreciation without burning a single dollar of the country’s foreign reserves.
It also targeted the source of market stress directly: the need for corporate insurance as companies rushed to futures markets to hedge their dollar-denominated debt………………………………………..Full Article: Source

EU carbon closes at seven-week high as crude oil price surges

Posted on 29 August 2013 by VRS  |  Email |Print

European Union emission permits advanced to the highest in seven weeks on speculation that crude oil’s surge to a two-year peak may spur demand for carbon allowances. Carbon for December gained as much as 3.7 percent to 4.72 euros ($6.31) a metric ton on London’s ICE Futures Europe exchange. The contract closed up 1.5 percent at 4.61 euros a ton, the highest since July 3.
West Texas Intermediate crude rose as much as 3 percent in electronic trading on the New York Mercantile Exchange, its highest since May 2011, on concern that conflict in Syria may threaten oil supplies from the Middle East………………………………………..Full Article: Source

The rise and rise of traded carbon

Posted on 29 August 2013 by VRS  |  Email |Print

Have you heard of carbon trading? Where a country or region sets a cap for its emissions, and then uses permit trading to seek out the cheapest cuts. I’m guessing you have. But what about the carbon in trade? The carbon that moves around the world in the form of fossil fuels and finished products. Heard of it?
When we talk about carbon emissions we invariably talk about where emissions occur due to fossil fuel combustion. But carbon moves around a lot. Oil moves from the Middle East to Europe before being used and products purchased in the US are often made in China. These movements have important implications for climate policy………………………………………..Full Article: Source

The global implications of falling commodity prices

Posted on 28 August 2013 by VRS  |  Email |Print

The decade-long commodity-price boom has come to an end, with serious implications for global GDP growth. And, although economic patterns do not reproduce themselves exactly, the end of the upward phase of the commodity super-cycle that the world has experienced since the early 2000’s dims developing countries’ prospects for continued rapid catch-up to advanced-country income levels.
Over the year ending in July, The Economist’s commodity-price index fell by 16.5% in dollar terms (22.4% in euros) with metal prices falling for more than two years since peaking in early 2011………………………………………..Full Article: Source

Strong outlook for the farm sector comes with a commodities caveat

Posted on 28 August 2013 by VRS  |  Email |Print

Things are still good in the U.S. farm belt. On Tuesday, the Department of Agriculture said it expects net farm income this year to reach $120.6 billion, a jump of 6% from 2012 and the second highest since 1973 on an inflation-adjusted basis.
But the robust outlook comes with a caveat. Federal forecasters in their last outlook back in February predicted an even stronger 2013. Tuesday’s projection for net farm income was a more than 6% decline from that earlier forecast………………………………………..Full Article: Source

Five China charts that look bullish for commodities

Posted on 28 August 2013 by VRS  |  Email |Print

Over the past few months, investors have seen better economic data coming out of Europe. Consumer confidence in the continent has been rising, manufacturing data is improving and the fiscal situation is on the mend. Now, China appears to be strengthening as well, which could signal better times ahead – U.S. Global Investors.
Below are five charts that I believe look bullish for China and commodities. While not meant to be comprehensive, they do point to areas where investors might want to pay close attention………………………………………..Full Article: Source

Crude oil prices reach 18-month high

Posted on 28 August 2013 by VRS  |  Email |Print

Crude oil prices jumped nearly 3 percent to an 18-month high on Tuesday, capping an increase of about 20 percent over the past two months as a result of scattered supply disruptions and rising anxiety about war and political instability in the Middle East.
The growing likelihood of a U.S.-led military response to reports of Syrian use of chemical weapons rattled markets, analysts said. The price of the U.S. benchmark crude oil, West Texas Intermediate, on the New York Mercantile Exchange closed at $109.01 a barrel for October delivery, up $3.09 from the day before and up from less than $95 in late June………………………………………..Full Article: Source

Is a spike in oil prices around the corner?

Posted on 28 August 2013 by VRS  |  Email |Print

As oil markets start to anticipate the prospect of U.S. military intervention in Syria, just how high prices will climb could be anyone’s guess, analysts say.
Brent crude oil prices hit a five-month high at about $111.68 a barrel on Monday after the U.S. government suggested it was moving towards a possible military response to last week’s suspected chemical attack in Syria………………………………………..Full Article: Source

German energy crisis favours the fleet

Posted on 28 August 2013 by VRS  |  Email |Print

Germany’s half-a-trillion-euro energy overhaul is forcing sector players to turn around their business models fast, giving smaller groups a head start on the country’s ponderous utilities.
Europe’s largest economy has seen its energy sector slide into crisis following its decision to abandon nuclear power by 2022, as a subsidised boom in solar power has dealt a heavy blow to traditional utilities, forcing them to close plants generating thousands of megawatts………………………………………..Full Article: Source

Commodities: Is gold rise just a dead cat bounce?

Posted on 28 August 2013 by VRS  |  Email |Print

Gold has been rallying from its three-year low of just off $1,180 an ounce in June. On Friday, it closed at $1,378. What is driving this tentative recovery in the market for the “safe haven” metal? A key factor may be that the sell-off in exchange-traded funds backed by gold has passed its worst.
“Support has come from the financial market turmoil in emerging economies, geopolitical tension in Syria and Egypt, together with the fact that gold holdings in exchange-traded products has been stable for a couple of weeks,” says Ole Hansen, head of commodity strategy at Saxo Bank………………………………………..Full Article: Source

Gold price: Speed bump or reversal?

Posted on 28 August 2013 by VRS  |  Email |Print

There’s been a dramatic spike in the pro-gold coverage coming from the non-mainstream financial press, and while I in now way claim to know any better than they the future price direction of gold, I do think it a tad premature to be proclaiming decisively that gold has reversed course and will now head toward the $2,000 mark.
JP Morgan recently jumped on the “buy gold” bandwagon pointing to fundamentals in the end user segment driven by India’s annual wedding season demand boost. Hank Paulson’s announcement regarding his funds’ reduction in gold exchange traded holdings by half wasn’t enough to dampen the enthusiasm engendered by the JP Morgan tout and the ensuing message amplification by the plethora of bandwagoneers………………………………………..Full Article: Source

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