Salient to Investors:
Dan Denbow at USAA Precious Metals & Minerals Fund said Bernanke’s comments put positive feeling back into gold and all commodities.
Standard Chartered said the cost of borrowing gold reached a 4 1/2-year high in London last week, and may be a bullish – gold may rally above $1,400 by the end of 2013.
Deutsche Bank said the worst of the selloff may have passed, but Goldman Sachs and Credit Suisse are forecasting more declines. Money managers’ holdings of short contracts reached the highest since the CFTC data begins in 2006.
John Goldsmith at Montrusco Bolton Investments said the prospect of higher interest rates and a stronger dollar mean the recent gains may be short-lived.
Imports of copper by China rose to a 9-month high in June. Michael Haigh at Societe Generale said the decade-long bull market in commodities may extend for an additional 15 to 20 years, driven by urbanization and growing populations in countries including China and India.
James Paulsen at Wells Capital Mgmt said he would be a buyer of commodities, as demand hinges on whether the emerging world does a little better in half2, and it will.
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