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Q4 Commodity Outlook: Weak fundamentals create headwinds
Into the fourth quarter we think the impact of the latest round of
quantitative easing will fade and the dollar should find some support
which in turn will create some headwinds for the commodity sector as a
whole, says Ole Hansen, Head of Commodity Strategy, in Saxo Bank's Q4 Outlook.
We continue to favour gold as raised inflation expectations and
low official US rates until 2015 will keep the real rate of return on
fixed income investment entrenched in negative territory. Energy prices,
which had another attempt to the upside in Q3, once again found lack of
support from sluggish economic fundamentals and lower to flat prices
followed. This scenario of subdued price action is set to continue into
Q4 barring any geo-political upheaval.
For more of Ole Hansen's commodity commentary on TradingFloor.com see: http://www.tradingfloor.com/traders/ole-hansen
02:18 minutes
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