Daily FNArena News - Commodities

It seems the planets are beginning to align once more for those who have had their patience sorely tested – the gold bugs.

Barclays Capital has reviewed the performance of commodity markets for the last quarter and concludes oil and base metals should go higher while gold looks like moving sideways.

Oil prices are again near their highs of this time last year but according to Commonwealth Bank the difference is OPEC can lift production and boost supply.

Wednesday night’s CPI result in the US should provide a clue to the next move in gold as the US dollar threatens to truly collapse.

TradeTech has lowered its weekly spot price indicator by US$4/lb putting pressure on share prices of uranium companies at the start of a new week.

As the US yield curve normalises, the oil curve is swinging into backwardation. This should, in theory, lead to an oil price reversal.

A short term pullback, a return to strength, and then a gradual decline. That’s the conclusion for the uranium market at present.

A lack of speculative interest has caused TradeTech’s weekly spot price indicator to fall to US$135/lb. Is this the peak or just a pause?

The Australian uranium market has slowed in recent weeks but Resource Capital Research expects the spot price to continue to rise over the next year.

Canada’s National Bank Financial is of the view that buyers may shift their focus to longer term prices instead of the spot market.