| Oil slips as Opec gathers in Saudi Arabia
Commodities came under pressure on Monday as a wave of risk aversion swept across markets, dragging energy, metals and agricultural prices lower. Oil fell sharply at the start of a crucial week with crude prices in sight of the key $100 level as delegates began to gather for a historic meeting of the Organisation of the Petroleum Exporting Countries. .
DMCC names new Executive Director of Gold and Precious Metals
MacDonald takes over from Colin Griffith, who has held this position for the last four years. This move comes as DMCC works to consolidate the strides the division has made under Griffith and build upon those successes. In his new role at DMCC, spearheading the Gold & Precious Metals division, MacDonald will focus on further enhancing Dubai's role as a global centre for the gold and precious metals trade, through broadening local market horizons in refining, manufacturing and trading skills. He will also oversee business development, strengthen stakeholder relationships and develop new products while promoting best practices in the local and regional markets. MacDonald will also explore and develop DMCC-branded commodities-based investment vehicles to grow DMCC's current footprint in the precious metals sector.
Barclays Launches Eight Commodity Sub-Sector iPath(R) Exchange Traded ...
NEW YORK, Oct. 24 /PRNewswire/ -- Barclays Bank PLC announced today the launch of eight new iPath(R) Exchange Traded Notes (ETNs) on the NYSE Arca stock exchange. The iPath ETNs are the first Exchange Traded Notes designed to offer exposure to sub-indexes of the Dow Jones-AIG Commodity Index(SM). They are linked to agriculture, copper, energy, grains, industrial metals, livestock, natural gas, and nickel. "The new iPath sub-sector ETNs provide investors with access to harder-to- reach markets," said Philippe El-Asmar, Head of Investor Solutions, Americas at Barclays Capital. "Investments in iPath Exchange Traded Notes surpassed $3.6 billion in just under 16 months from inception, and we believe these new ETNs will continue to attract attention particularly with daily creations and redemptions available since October 1, 2007." "The new iPath ETNs demonstrate Barclays continued commitment to providing investors with innovative investment solutions to the commodity markets," added Benoit de Vitry, Head of Commodities, Emerging Markets Rates and Quantitative Analytics at Barclays Capital.
Platinum Hits Record High Yet Again; Wheat Also Jumps To All-Time High
Platinum hit record highs for a third straight session on Monday amid output woes in South Africa and inflation from pricier oil. Wheat also peaked for a third day running on heavy speculative buying. Copper prices ended up but off their highs after a large earthquake in Chile, the world's biggest producer of copper and home to a wide array of industrial metal deposits. Leading commodity indexes such as the Reuters-Jefferies CRB, S&P GSCI and Dow Jones-AIG all rose about 1% each. Fundamentals aside, investors were drawn to commodities after Wall Street stocks slid on uninspiring U.S. factory orders for December which came in below expectations but not weak enough to spark a broad market shake-up. A weaker U.S. dollar against the euro also bolstered the case for buying inflation-sensitive commodities, particularly precious metals like gold and platinum.
Stocks Advance, Led by Techs
Stocks closed higher Wednesday after reversing an earlier drop. Technology issues were among the session's best performers, aided by a strong earnings report from Hewlett-Packard (HPQ). Financial stocks rose later in the day, as minutes from Federal Reserve January policy meetings apparently supported hopes for further interest rate cuts. Stocks tied to precious metals and oil got a lift from gains in commodities futures, as crude oil topped the $100 mark once again to close at a new record. Investors also digested reports showing worsening inflation risks and only slight improvement in the housing market. On Wednesday, the Dow Jones industrial average finished higher by 90.04 points, or 0.73%, at 12,427.26. The broader S&P 500 index added 11.25 points, or 0.83%, to end at 1,360.03.
Goldman Sachs reduces '08 base metals forecast, maintains $750 gold
Citing downgrades in global economic activity, Goldman Sachs reduced its 2008 base metals price outlook, advising a stronger U.S. dollar will pressure gold prices lower to an average of $750/oz.RENO, NV Demand concerns and rising supply have convinced Goldman Sachs commodity analysts to forecast a "retrenchment in commodity prices from recent highs, which has already largely occurred." Noting that base metals are most closely related to the industrial cycle with expected global economic activity expected to decline, commodities analysts reduced their 2008 base metals forecasts, but added they "still expect prices to reach historically high levels in some cases by year-end." Nevertheless, Goldman Sachs recommended opening a long timespread position in copper.
Import difficulties outweigh recession fears
Commodities took off on Monday after their weak performance on Friday. In the oil market the uncertain prospects of economic growth in the US had been pushed to the background for a time, and focus was on import problems in Texas and Louisiana. All passage of tankers to the country's most important oil terminal was halted because of dense fog. The difficulties helped to send oil as high as USD 90.83, and oil closed the day up by 1.2%. Subsequently it was possible for a few tankers to move in, which put pressure on oil. This morning, however, all activity is again reported to be at a standstill. Copper and aluminium both gained almost half a percentage on a day when the Asian coal prices hit a new record. The tight coal market has caused suspension of an appreciable portion of the production of base metals in both China and South Africa.
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