| Topic : November Market Outlook |
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Investment Hub
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Activity:
Question posted: 11 13 2009 12:56:20 +0000,
2 answers, 141 views, last activity
07 06 2010 20:18:08 +0000
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The commodity market is recovering from the global economic melt down. How will you rate the recovery of commodity market? Will commodity market improve in the near future?
Light crude oil remained in a broad range and closed the month of September flat at $70.61/bbl. Over the next 12 months, we can expect oil prices to rise as demand from emerging markets is likely to compensate for the decline in demand from developed countries, while rather inelastic supply and limited alternatives should provide further support to oil prices.
The gold price appears to be based more on trends than on fundamentals. Fears of a consolidation in equity and credit markets as well as a weaker USD appear to be have been providing support to gold prices since early September. However, as inflation fears remain muted for the time being, demand for gold as a hedge may be reduced. Maintaining the neutral outlook both in the short and long term, we can say that there wont be much more upside to gold prices.
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