Salient to Investors:
Ted Harper at Frost Investment Advisors said the concern about the Fed removing QE signals a strengthening in conditions, which helps the dollar and at the margin hurts gold. Harper said John Paulson’s returns are emblematic of the difficult environment for gold.
The World Bank raised its 2013 US growth forecast to 2 percent.
Paulson & Co. said it has no intention of closing down its Gold Fund and valuations provide significant upside.
IMF sees the Fed maintaining large monthly bond purchases until at least the end of 2013 and urged the Fed to carefully manage its exit plan.
Christopher Burton at Credit Suisse Asset Mgmt said QE continuing for too long could lead to inflation, and that would lead to higher commodity prices.
Goldman Sachs says gold will continue to slide over the medium term on a re-acceleration in US growth and a further unwinding of ETF positions, and forecasts $1,345 in 12 months.
Barclays says copper supplies will outpace demand by 162,000 metric tons this year, from a surplus of 41,000 tons in 2012.
Stanley Crouch at Aegis Capital said there is a glut of agricultural commodities and slack demand so we must grow our way into more demand – we won’t see the feared shortages.
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