Daily FNArena News - Commodities

Where to, the nickel price? If it’s down then Minara is in big trouble. It if it’s up than Rio will be left behind by BHP.

The latest review from GFMS shows gold hedging continuing to decline, while factors supportive to the gold price outlook remain in place.

Last night’s sell-off in gold has only steeled the bullish resolve of its fans.

The Iran situation, jewellery demand, reduced production and central bank diversification all point to gold pushing through US$700/oz as many have expected.

An unexpected strong rebound in demand from China has made the seaborne thermal coal market tighter than expected. Is a contract price surprise in the making?

Uranium producers are in the box seat as buyers clamour for the tidbits on offer.

Analysts suggest the oil market remains tight, but capacity exists to avoid sudden price shocks.

Highly respected technical chartist and author of the Dow Theory newsletter, Richard Russell, has agreed that the gold price should be much, much higher.

Credit Suisse believes precious metals are showing upside potential from here, while base metals may waver before rallying later in 2007.

The U3O8 spot price hasn’t moved much so far this year but an auction this week could well make the difference.