| Videos | Channels | Search |
Metal sweetheart slumps on emerging concerns
Saxo Bank's Ole Hansen tells Saxo TV's Sara Walker the August rally we saw in commodities has been replaced by a wait and see mode across the sectors, with the DJ UBS on track for its first weekly drop in four weeks.
The main drivers are; continued uncertainty over the Syrian crisis, growing optimism for the prospects for developed economies following a host of good data, further weakness in emerging economies and tapering in the US is all but assured to be announced on September the 18th.
Brent Crude is hovering around USD 115. The oil market is tightening with Libyan oil still off-line and there is a wait and see approach on Syria. A 5-10 dollar risk premium is currently in the price as a slowing emerging market demand is offset against a recovering developed market.
Two years ago on September the 6th gold hit a record of 1921, since then it has dropped by almost 30 percent. Stronger US data has led to a rising dollar and bond yields and that has eroded support for the precious metal.
The biggest faller on the week was palladium. It was the darling of the metals during Q1 of 2013 but slowing car sales in Western Europe and a slump in emerging markets has caused concerns that demand for auto production will fall.
02:01 minutes
Tags: auto production, bond yields, brent crude, cocoa, commodities, commodity, crisis, data, demand, developed economies, dj ubs, dollar, emerging economies, emerging markets, federal reserve, gold, ivory coast, metals, oil, oil market, ole hansen, palladium, precious metals, sara walker, saxo bank, saxo tv, slump, syria, tapering, tradingfloor.com, uncertainty, us, video, western europe