MW: Most commodity prices look set to fall, except gold
Commodity futures prices are trading higher year to date, with the exception of a few such as natural gas NG12H +4.48% , which has fallen around 15%. But that could soon change.
Commodity prices have been “helped by increasing hopes that the U.S. will lead a strong recovery in the global economy, declining fears of a ‘hard landing’ in China and faith that a disorderly Greek default can be avoided,” said Julian Jessop, chief global economist at Capital Economics, in a note Tuesday.
“But all of these supports are fragile and we expect sentiment to turn negative again during the course of the year, causing large falls in the prices of crude oil, industrial metals and many agricultural,” he said, adding that the “biggest downside risk is the prospect that the euro will break apart.”
If it does, “the only clear winner would be gold,” he said.
Futures prices for silver SI2H -0.24% , copper HG2H -1.03% , platinum PL2J -0.97% and palladium PA2H -1.48% traded lower Tuesday, with gold GC2J -0.19% wavering between small losses and gains. http://www.marketwatch.com/story/gold-futures-extend-weekly-losses-2012-02-13
