Hedge funds are unloading bullish bets on gold as a slide in prices sends the metal to its worst start to a year since 1997. Holdings in silver dropped to the lowest since February.
Copper prices may jump 22 percent to $5 a pound within 24 months as supply dwindles amid rising demand, according to U.S. Global Investors Inc., which manages $3 billion in San Antonio.
Hedge funds cut their bullish bets on commodities by the most for any week since June as Japan’s nuclear crisis threatened the global economic recovery.
In a year when demand for precious metals is only getting hotter, platinum is having its worst relative performance since 2006.
Commodity prices plunged the most in three months as slowing Chinese manufacturing and budget gaps in Europe spurred speculation that the global economic recovery will recede, curbing demand for raw materials.
Copper prices rose, snapping four days of losses, on speculation that the European Central Bank will take bolder steps to stem the region’s debt crisis.
Hedge funds reduced their bullish bets on copper futures by the most in five months on concern that China, the world’s largest buyer, may take more steps to restrain its economy.
"Grains have been hit so hard, now's the time to be looking at them. There's not much priced in in terms of potential shortfalls in next year's crop."
- Brian Hicks on Dec 01, 2014