Gold Silver Reports – Investors Raise Bets on Surging Commodities as Crude Oil Tops $70 – Investors are betting there’s more to come from commodities after a surge in industrial metals and oil prices.
Crude Oil Tops $70
Assets invested in commodity-linked securities climbed to a four-year high of $311 billion after increasing 1 percent in December, according to Barclays Plc. Net inflows of $3.4 billion outweighed losses of $300 million last month, signaling bullishness.
“Rising manufacturing confidence in many regions continues to spur commodity demand growth,” Warren Russell, a New York-based analyst at Barclays, said in a note to clients. “Strong economic activity is set to continue in 2018.”
The return of global growth, manufacturing output and supply constraints have whetted investor appetites at a time when stock and bond valuations are high. Brent crude topped $70 a barrel in London on Thursday for the first time in three years, just days after zinc touched a 10-year intraday high. Copper’s turn was late last month, when it reached levels last seen almost four years ago.
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Still, the big risk for commodities is, as ever, the world’s second-largest economy, Russell said. “China’s expected slowdown should mean that recent strength in oil and copper is unlikely to last.” – Neal Bhai Reports
