Commodities Correspondent
Pratima's Feed
May 10, 2011

Oil slips, spotlight on China commodities demand

LONDON, May 10 (Reuters) – U.S. oil prices tumbled on
Tuesday towards $100 a barrel as the cost of holding the
commodity rose and markets started to worry that China may
extend monetary tightening to slow economic growth.

Copper steadied, but again uncertainty about demand from top
consumer China was expected to check prices, while gold slipped
on dollar strength and lower crude oil prices.

May 10, 2011

Dollar vs commodities play strong on end of QE2

LONDON (Reuters) – Prospects of an end to liquidity provided by the U.S. Federal Reserve have sent the inverse correlation between commodities and the dollar into overdrive and to many investors that means time to sell.

The inverse relationship has surged in recent days to levels not seen since early November when the U.S. central bank announced further liquidity boosting measures.

May 10, 2011

Analysis: Dollar vs commodities play strong on end of QE2

LONDON (Reuters) – Prospects of an end to liquidity provided by the U.S. Federal Reserve have sent the inverse correlation between commodities and the dollar into overdrive and to many investors that means time to sell.

The inverse relationship has surged in recent days to levels not seen since early November when the U.S. central bank announced further liquidity boosting measures.

May 6, 2011

Silver slides more, bargain hunters help gold

LONDON (Reuters) – Gold bounced on Friday as bargain hunters entered the fray, but silver slid to a two-month low on selling sparked by higher margin requirements and expectations of a stronger dollar.

Spot gold was bid at $1,481.39 a troy ounce at 1136 GMT from $1,471.70 late in New York on Thursday when it saw $1,462.40 an ounce, its lowest since April 14. It is down about $100 since a record high of $1,575.79 hit on May 2.

Apr 26, 2011

Gold, silver retreat from records, eyes on Fed

LONDON (Reuters) – Silver and gold tumbled on Tuesday as investors sold on uncertainty about the direction of monetary policy in the United States, but a softer dollar helped support prices and sentiment.

Spot silver ceded nearly 5 percent to $44.61 an ounce after touching $49.31 an ounce late in New York on Monday, within reach of $49.48 hit in January 1980

Apr 21, 2011

Luvata sees copper product boost for renewables

LONDON (Reuters) – Luvata expects higher sales of copper products used in renewable energy in coming months and years as governments around the world look away from nuclear power, a company executive told Reuters.

Japan’s earthquake and tsunami, which has crippled some of the country’s nuclear power plants, has thrown the spotlight on renewable energy as an alternative, said Jussi Helavirta, head of Luvata’s special products division said this week.

Apr 13, 2011

Now good time to hedge base metal exposure-analysts

LONDON, April 13 (Reuters) – Narrowing market price ranges
suggest now may be a good time for consumers and producers to
take advantage of the cheaper cost of hedging their exposure to
copper and aluminium, analysts said.

Hedging or insuring using options — contracts which give
holders the right to buy or sell the three-month metal contract
on the London Metal Exchange at a fixed price in the future –
now costs less because volatility has tumbled, for now at least.

Mar 23, 2011

Gold’s appeal boosted by Portugal vote

LONDON (Reuters) – Gold rose on Wednesday as investors bought the precious metal on fears that a key vote in Portugal could topple the country’s government and on soaring tensions in the Middle East.

Spot gold was bid at $1,430.10 a troy ounce at 1012 GMT from $1,429.50 late in New York on Tuesday. The precious metal hit a record high of $1,444.40 an ounce on March 7.

Mar 22, 2011

Japan lifts global shares, U.S. dollar tumbles

NEW YORK/LONDON (Reuters) – A jump in Japanese shares buoyed global equities on Tuesday while the U.S. dollar tumbled to 15-month lows against the index of major currencies and was expected to weaken further.

The benchmark Nikkei average jumped 4.4 percent as traders in Tokyo returned from a national holiday to recoup some of last week’s losses of more than 10 percent.

Mar 22, 2011

Japan market recovery helps world stocks bounce back

LONDON (Reuters) – World stocks put in solid gains on Tuesday as concerns eased about the impact of Japan’s triple disaster on world growth prospects and traders in Tokyo returned from a national holiday to recoup some of last week’s losses.

Buyers expecting the economy will also ride out continuing unrest in the Middle East emerged to tap cheap valuations, while the euro rose to its highest in four and a half months against the dollar.