Commodity prices have dramatically fallen out of their multi-year uptrends in recent months, as the global macroeconomic environment has deteriorated and risk aversion swept through markets. This week, Edward Coughlan, BMI’s Head of Mining Analysis is joined by John Davies, Head of Commodities Analysis, to discuss the outlook for commodity prices in 2012.
Gold prices have made significant ground in recent trading, prompting a surge of interest in the precious metal. Indeed, speculative interest in gold has risen to a 16-year high in recent days and the technical picture remains encouraging. Spot gold has broken above resistance around the US$990.00/oz level, and crucially, is currently sitting pretty above… [Read more]
The big rally in gold over the past few market sessions has caught my eye. It has happened at a time of dollar stability, of increasingly deflationary news, including October’s negative month-on-month CPI reading from the US, and as other commodities have failed to gain traction. Thus, the near-20% move we have seen in bullion,… [Read more]
At the moment, the view of financial stocks is playing out. Remember the monthly chart we ran recently of AIG, which we said looked ‘awful’. Yesterday the price dropped to below US$24.00, despite the bounce in the Dow Jones index. This is not a good sign, and we continue to see the stock falling to… [Read more]
