Commodities Correspondent
Pratima's Feed
Jun 15, 2011

China to return to copper market, deficit on cards

LONDON (Reuters) – China is likely to return to the copper market and vindicate predictions of a deficit this year, easing current concerns that its absence could fuel a surplus.

The second quarter is when China traditionally buys copper ahead of strong construction and industrial activity in the third quarter. But this year purchases have been deferred, mostly because of record high prices.

Jun 14, 2011

Gold rallies on weaker dollar, jewelry demand

LONDON (Reuters) – Gold rallied on Tuesday as the jewelry sector came looking for bargains, the dollar slipped and investors fretted about the Greek debt crisis.

Spot gold was bid at $1,518.64 a troy ounce at 0929 GMT (5:29 a.m. ET) from $1,514.73 an ounce late in New York on Monday when it suffered its biggest one-day loss in a month, touching a three-week low of $1,511.11 an ounce.

Jun 10, 2011

Analysis: Pensions need new commodity strategy to diversify

LONDON (Reuters) – Pension funds that invest in commodities to diversify portfolios need a different approach that involves understanding fundamentals and targeting certain areas, because the sector as a whole no longer fulfils the role.

Natural resources have historically had a negative correlation with equities. Commodities reflected immediate economic conditions, while the stock market tends to discount expectations for future growth and earnings.

Jun 3, 2011

U.S. credit rating and dollar worries shore up gold

LONDON (Reuters) – Gold held firm on Friday supported by the weaker dollar and a warning from Moody’s that it would consider cutting the United States’ top-notch credit rating if there is no progress on debt talks.

Traders and analysts expect subdued trading ahead of a key monthly jobs report from the United States, the world’s largest economy, which could help determine the future direction of the dollar.

May 27, 2011

Bank deals have led to aluminium surcharges -BMW

LONDON, May 27 (Reuters) – Bank financing deals that have
tied up large amounts of aluminium in London Metal Exchange
(LME) warehouses have led some suppliers to impose surcharges,
German luxury carmaker BMW (BMWG.DE: Quote, Profile, Research, Stock Buzz) said on Friday.

Metal industry sources estimate these deals have tied up a
hefty 70 percent or 3.3 million tonnes of record high aluminium
stocks at 4.7 million tonnes in LME-registered warehouses.
MALSTX-TOTAL

May 27, 2011

Weak dollar, Greek debt boost gold’s appeal

LONDON (Reuters) – Gold prices climbed on Friday as worries about Greece’s debt crisis triggered buying by investors looking for a safe place to park assets, while the softer dollar also helped underpin sentiment.

Spot gold was bid at $1,525.29 a troy ounce at 1123 GMT from $1,518.10 late in New York on Thursday.

May 25, 2011

Gold hits 3-week high on euro zone debt jitters

LONDON (Reuters) – Gold hit a three-week high on Wednesday, boosted by fears about the debt crisis in euro zone countries such as Greece while the resulting stronger dollar against the euro undermined sentiment.

Spot gold hit $1,528.40 a troy ounce, its highest since May 4. It was bid at $1,526.79 an ounce at 1120 GMT from $1,525.75 an ounce late in New York on Tuesday.

May 25, 2011

MPs alert watchdog on LME warehousers

LONDON (Reuters) – Anti-competition authorities may probe activity by large traders on the London Metal Exchange that also own warehouses, including investment bank JP Morgan, after MPs raised concerns.

A parliamentary committee said in a report it was concerned that the same firms that trade metals were able to hold large amounts of metal stored on the LME, the world’s top metals exchange, and alerted competition authorities.

May 25, 2011

Gold buoyed by euro zone debt jitters

LONDON (Reuters) – Gold steadied on Wednesday, buttressed by fears about the debt crisis in euro zone countries such as Greece while the resulting stronger dollar against the euro undermined sentiment.

Spot gold was bid at $1,526.20 a troy ounce at 5:23 a.m. EDT from $1,525.75 an ounce late in New York on Tuesday when the precious metal hit a three-week high of $1,527.45.

May 24, 2011

Lawmakers alert watchdog on LME warehousers

LONDON (Reuters) – Anti-competition authorities may probe activity by large traders on the London Metal Exchange that also own warehouses, including investment bank JP Morgan (JPM.N: Quote, Profile, Research), after lawmakers raised concerns.

A parliamentary committee said in a report it was concerned that the same firms that trade metals were able to hold large amounts of metal stored on the LME, the world’s top metals exchange, and alerted competition authorities.