R/€ = 15.05 Change: 0.08
R/$ = 12.27 Change: 0.07
Au 1339.78 $/oz Change: 101.94
Pt 1001.00 $/oz Change: 123.50
 
 
R/€ = 15.05 Change: 0.08
R/$ = 12.27 Change: 0.07
Au 1339.78 $/oz Change: 101.94
Pt 1001.00 $/oz Change: 123.50
 
 
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Bank of China sees commodities in full bloom amid 2018 rotation

11th January 2018 BY: Bloomberg

LONDON – The stage may be set for commodities to extend their stellar gains, according to Bank of China International analysts.

By the fourth quarter copper will average $7 500/t and gold $1 400/oz, they wrote in a note this week, as financial drivers potentially outweigh fundamentals in 2018. In other words, the stars may continue to align for raw materials.

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“In a world of upbeat economic growth, USD weakness, falling bond prices and elevated equity valuations, the commodities revival should come into full bloom,” said analysts led by London-based Xiao Fu, the commercial bank’s head of commodity market strategy.

The prediction could prove well-timed. China’s wariness about Treasuries would appear to be giving new fuel to dollar bears and driving down bonds, while gold hit the highest in about four months earlier on Wednesday. The global stock rally seems to be taking a pause as investors assess recent moves following six days of gains for the MSCI All World Index.

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Copper was at $7 153/t as of 6:04 p.m. in London, while gold rose 0.4% to $1 318.67. 

EDITED BY: Creamer Media Reporter
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