Metals Making Comeback Lately - optionsXpress
Monday July 7, 2014 10:50 AM
There has been a stronger tone in a number of base and precious metals lately, says Mike Zarembski, senior commodities analyst with optionsXpress. “Don’t look now but one of the least loved commodity sectors by trader and analysts to start 2014— precious metals – (is) starting to display rather bullish price moves,” he says. Palladium has led the charge on tight supplies and improving auto sales, he says. “However, some of the biggest surprises are in the performance of gold and silver of late,” he says. “Here, analysts note that gold ETF (exchange-traded-fund) purchases have increased and now stand at their highest levels since mid- April, as buyers are starting to turn once again towards gold as a diversification from equities and bonds due to rising global tensions especially in the Middle East, as well as, a potential hedge against rising inflation. Even the base-metals sector is starting to show some support, especially aluminum, zinc and copper. Traders view a potential Chinese economic rebound, which is being spurred by data showing manufacturing expanding at its fastest pace so far this year, along with continued improvement in U.S employment, which may encourage expansion in the industrial sector and in turn help support demand for industrial metals.”