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Commodity Fundamentals Are Still Positive, But Macro Worries Overshadowing

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"The macroeconomic worries about debt and slowing global growth are overshadowing the current tight supply and demand fundamentals of commodities."

Kitco News, Debbie Carlson

The macroeconomic worries about debt and slowing global growth are overshadowing the current tight supply and demand fundamentals of commodities, says Barclays Capital. "Financial markets are delicately poised between optimism and despair, nowhere more so than in commodities. Commodity demand growth is slowing but does not yet appear to be doing so fast enough to ease pressure on the supply side," they say.

Any improvement in "the gloom afflicting financial markets could boost commodities prices quite quickly. The longer-term outlook is solid, in the short-term they say "proceed with caution." The bank likes gold as a hedge of financial insecurity. . . .View Full Article

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