Commodities Correspondent
Pratima's Feed
May 16, 2011

Gold eases, undermined by dollar strength

LONDON (Reuters) – Gold was undermined on Monday by the dollar’s rise against the euro on uncertainty about aid for indebted euro zone countries, which also sparked some safe-haven buying of the precious metal.

Spot gold was bid at $1,494.96 a troy ounce at 8 a.m. EDT from $1,493.25 late in New York on Friday. The precious metal hit a record high of $1,575.79 on May 2. U.S. gold was little changed at $1,493.90 an ounce.

May 11, 2011

Too early to call a bear market for copper

LONDON/HONG KONG (Reuters) – An exodus of investors from the copper market could see prices slip to the $8,000 a tonne mark before heading back towards record highs later this year as stronger demand from China and Japan becomes visible.

Copper prices tumbled with other commodities last week as the dollar strengthened and investors fretted about consumption after disappointing surveys of manufacturing in top consumers China and United States.

May 10, 2011

Analysis: Too early to call a bear market for copper

LONDON/HONG KONG (Reuters) – An exodus of investors from the copper market could see prices slip to the $8,000 a ton mark before heading back toward record highs later this year as stronger demand from China and Japan becomes visible.

Copper prices tumbled with other commodities last week as the dollar strengthened and investors fretted about consumption after disappointing surveys of manufacturing in top consumers China and United States.

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.