Palm oil production in Southeast Asia, the largest growing region, is at increasing risk from the probable onset of an El Nino later this year after estates were already hurt by dryness in the first quarter. Prices advanced.
Bearish speculators misjudged gold bets again as the release of Federal Reserve minutes extended this month’s rally in bullion.
Goldman Sachs Group Inc. expects commodity prices to decline this year even after precious metals and crop prices rallied on Ukraine tension and weather concerns.
Gold will resume a decline as U.S. economic growth accelerates, according to Goldman Sachs Group Inc., which reiterated a forecast for the metal to end the year at $1,050 an ounce.
Hedge funds and other speculators misjudged gold prices for a second time in three weeks.
Gold is Morgan Stanley’s least preferred commodity among metals as prices resume a decline this year on the outlook for rising U.S. interest rates and low inflation expectations.
A year after Citigroup Inc. declared the decade-long run of commodity gains over, wacky weather, dead piglets and Vladimir Putin have gotten in the way.
Goldman Sachs Group Inc. and Societe General SA can thank Janet Yellen for helping to get their bearish forecasts for gold back on track.
Gold fell to a six-week low in New York as signs of a U.S. economic recovery bolster the case for continued tapering of stimulus by the Federal Reserve.
Gold futures fell the most in 13 weeks after the outlook for higher U.S. interest rates damped demand for the precious metal as a store of value. Palladium rose to a 31-month high on supply concerns.
"Disruptions associated with El Nino have historically been most important on the agriculture markets, with the typically most negatively impacted crops being palm, cocoa, coffee, sugar."
- Jeffrey Currie on Apr 14, 2014