Daily FNArena News - Commodities

Precious metals specialists at UniCredit believe spot gold can reach as high as US$1400/oz on a 3 to 5 years horizon.

National Australia Bank has joined the rush to lift forecasts for iron ore prices, the group forecasting a 15% increase but seeing price risk as to the upside.

Barclays Capital suggests the outlook is positive for metals leading into LME week next week, though ANZ’s commodities team sees scope for some short-term profit-taking.

The gold market’s worst kept secret has again become the stuff of headlines following a seemingly innocuous comment in a Citigroup report.

Industry consultant UxC has followed its peer TradeTech by equally cutting its weekly spot price indicator to US$75/lb.

Where is the bottom for spot uranium? It’s not at US$85 as TradeTech cut its spot price indicator by another US$10 to US$75/lb.

Traditionally gold has moved in step with US interest rates given its role as an inflationary hedge but China’s emergence provides additional support for the metal.

Participants at Metal Bulletin’s recent Stainless and Special Steel summit in Finland were broadly positive on the market outlook and expect nickel prices to move higher.

Strength in Asian markets kept steel prices steady over summer but industry consultant MEPS sees scope for higher prices thanks to tighter markets and higher raw material costs.

Base metal prices have peaked according to National Australia Bank but there is further upside in the bulks and rural commodities, particularly wheat and dairy.