Daily FNArena News - Commodities

Is it a trend? A new era? Or tomorrow’s battlefield for our children? Resources have become the centre of growing political nationalism around the globe.

Independent economic forecasters BIS Shrapnel believe Australian mining investments will peak in a year from now while commodity prices should collapse towards year end 2007.

It might be a super-cycle, but brokers have raised metal prices yet again ahead of perceived 2007 weakness.

The current market correction probably has some way to go yet, but gold should be heading for US$700/oz soon experts say.

Gold and silver have found a vacuum in the last two days as the US dollar has tried to reverse some of its slide. However, the bulls are not too fussed.

National Australia Bank is forecasting an easing of base metal prices from record highs over the course of 2007 due to long-awaited production increases, but zinc will remain tight.

National Australia Bank economists join the consensus view that the gold price will be higher in 2007.

ABN Amro analysts suggest that while the Switkowski report is a positive for the Australian uranium industry, little will be achieved in the short term.

Australian gold producers have been deliberately reducing production in the face of higher gold prices, as is the practise amongst all metal miners.

Read between the lines of recent securities analyst research reports and it would seem a platform has already been created for another higher than expected iron ore contract price rise in 2007.