Daily FNArena News - Commodities

Credit Suisse and Morgan Stanley have lifted their iron ore price forecasts as continued strength in steel production is being exacerbated by a lower than expected supply response.

Funds have moved back in. The FOMC is expected to leave interest rates unchanged. So what does this mean for precious metals and gold in particular?

The opening session of Nymex U3O8 futures saw a high of US$140/lb and a settlement of US$135/lb on thin volume.

Is this time “it” ? Market watchers and experts believe gold seems finally poised to break through US$695/oz and beyond.

As the US dollar continued its bounce against the euro, supply data, fund buying and a strike in Peru combined to send gold higher last night.

As yet more gold sales are registered by European central banks, the market is starting to wonder whether talk of quota shortfalls might be misplaced.

Industry consultant MEPS expects prices for both flat and long steel products in Asia to post short-term gains, but the increases are unlikely to last beyond the middle of the year.

Natixis Commodity Markets sees conditions in base metal markets as remaining supportive, though prices in 2008 are likely to be lower than this year.

Natixis Commodity Markets highlights the upward drift of “floor” prices in precious metals.

Queensland’s uranium policy is still up in the air, while GSJB Were believes ERA and Paladin are overvalued.