Gold’s biggest slump in three decades has been a boon for MKS (Switzerland) SA’s PAMP refinery near the Italian border in Castel San Pietro, whose bullion sales to China surged to a record as demand rose for coins, bars and jewelry.
HSBC Global Asset Management’s $2.2 billion Absolute Return fund reduced its gold holdings by more than a half, while cutting risk exposure in the portfolio to the lowest ever, according to Charles Morris, the fund manager.
Hedge funds are betting on cheaper silver for the first time since at least 2006, splitting from investors accumulating close to the biggest hoard ever and the analyst consensus for prices to rebound from a bear market.
Commodities may rebound from their first retreat in three years as developing economies shore up global growth, driving demand higher at a time when raw-material producers are already struggling to keep up.
At a time when hedge funds are reducing bullish silver bets by the most in two years, analysts predict a rally as manufacturing expands from China to the U.S., boosting demand for the precious metal most used in industry.
Investors are buying palladium at the fastest pace in more than a year as analysts predict rising demand and declining supply will turn this quarter’s worst- performing precious metal into the best by December.
Crude oil rose from a 12-week low and copper gained the most in six weeks after European policy makers approved almost $1 trillion in loans to ease a debt crisis that has been jeopardizing global growth.