Daily FNArena News - Commodities

Barclays Capital suggests it not just a case of all systems go since the Fed allayed further tightening fears. Inflation may yet prove resilient.

Higher oil prices pushed inflation higher in the 1970s, but UBS suggests the world has changed and the inflationary impact now should be less severe.

ETF buyers had begun to return cautiously at the bottom of the gold correction, but once the Fed cleared the air the dam walls broke.

China is taking measures to limit domestic steel production. The world is expected to benefit from this.

The latest data from an international study group suggest copper will be in surplus in 2006, but Citigroup analysts believe the group has significantly miscounted Chinese stocks.

Jim Rogers believes the current commodities boom has at least another eight years to go.

The numbers are contradictory and the opinions polarised. Depending on whom you ask, either oil prices will begin to drift lower shortly or the world should prepare itself for US$100/bbl.

The correction may have hit the price of gold, but NAB sees US interest rates at 5.25% through 2006 and on the decline in 2007, supporting further gold upside.

Another wave of selling pressure for gold may be ahead if the FOMC surprises on the hawkish side. Barclays has already scaled back its expectations.

Not all commodities are equal, says JP Morgan.