Daily FNArena News - Commodities

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.

Gold is suddenly under the global spotlight once more, as the believers argue blue sky and the non-believers are bemused.

Barclays Capital has lifted its long-term base metal price forecasts and expects copper, lead and tin to gain the most, while also increasing its gold price outlook for the rest of this year.

The only way for spot gold remains up, experts and market commentators believe, and firmly so.

Spot U3O8 took a breather this week. Meanwhile more and more experts are cutting their price forecasts for uranium, and target prices for producers.

Credit Suisse prefers gold and platinum above silver and palladium.

With OPEC to meet this week there remains uncertainty over the outlook for oil prices, the market currently tightening but OPEC not certain to lift production.