Investors are dumping gold-backed exchange-traded products at the fastest pace since the securities were created a decade ago, mirroring the steepest price drop in 32 years.
Commodities are in the early stages of a “price relapse” that may last through the first half of next year, said Nick Moore , head of commodity strategy at Royal Bank of Scotland Group Plc.
Nick Moore joined BlackRock Inc. as managing director and commodity strategist.
Nikos Kavalis has joined RBS Global Banking & Markets in London as a metals analyst, said Nick Moore, chief commodities strategist.
The biggest decline in aluminum prices since the global recession means at least 25 percent of the world’s smelters may be unprofitable.
Gold traders are the least bullish in two months after prices erased more than half of this year’s gain on speculation that a strengthening U.S. economy will dissuade the Federal Reserve from buying more debt.
Gold holdings in exchange-traded products backed by the metal have topped reserves held by Italy and France, according to the Royal Bank of Scotland Group Plc.
Copper fell for a second day in New York on concern demand may weaken as China, the world’s biggest consumer of the metal, moves to cool inflation.
Nickel, this year’s best-performing commodity, is poised to decline as world supplies climb at the fastest pace in a decade and China’s search for lower-cost alternatives slows demand growth.
Gold futures closed at the highest price in four weeks as a weaker dollar bolstered demand for commodities. Silver, platinum and palladium also surged.
"Precious-metals markets are waiting for comments from the ECB and FOMC, to see if any guidance of more decisive action and, ultimately, balance-sheet expansion is given. QE3 remains a possibility further ahead."
- Nick Moore on Aug 01, 2012
Silver Plunges 27% in a Week, Most Since 1975