Daily FNArena News - Commodities

Exchange-traded funds have been blamed for extreme volatility in energy and food prices.

Korea has indicated its intention to significantly increase its gold reserves as India joins the dollar-diversification drive.

Base metal prices are not supported by fundamentals, argues Foris, so any reduction in Chinese buying could generate a correction.

Demand remains fickle, but stainless steel producers have found they can raise prices without scaring away their customers.

After gaining for much of June uranium prices pulled back last week given weaker buyer interest at the higher price levels.

According to GaveKal Research, the risk for oil prices in coming months is to the downside as technical indicators are weakening.

The Chinese steel market has shown signs of strength in recent weeks but Standard Chartered sees scope for oversupply to put some short-term pressure on prices.

The uranium spot price continues its rise, supported by robust demand.

According to Barclays Capital shorter-term traders are now driving the gold price and with expectations of a stronger US dollar in coming weeks this suggests the price of the metal could fall further.

A short-term correction in commodity prices is likely, but by year’s end stronger prices are expected as fundamentals improve.