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Gold, Silver, other Commodities may remain bearish in November

iconNov 5, 2014 17:48
Source:SMM
INTL FCStone sees more weakness for commodities generally during November, including oil and gold.

UNITED STATES November 05 2014 3:01 PM

NEW YORK (Scrap Register): INTL FCStone sees more weakness for commodities generally during November, including oil and gold.

The firm predicted a month ago that there would be pain ahead for commodities on expected dollar appreciation during October, which in fact occurred.

INTL FCStone thinks that the ‘strong dollar play’ will still be very much with us over the course of November and will likely continue to exert further pressure on the general commodities index, along with a generally deteriorating global macro picture.

Gold, silver and both crude contracts look especially vulnerable, as in addition to a stronger dollar, they have to contend with worsening fundamentals, said INTL FCStone in its most recent monthly outlook.

In oil’s case, OPEC has been quite laissez-faire about the latest downdraft in prices amid oversupplied conditions and has not even gone through the motions of having a conference call to discuss the market, preferring to wait until it meets on Nov. 27th.

By then, Brent could very well be in the mid-$70 range, which is the level a Kuwaiti oil officials speculated would be a good equilibrium price for the market….Gold is suffering from the simple fact that there is very little on the horizon that is bullish; despite the trillions of dollars of stimulus over the past several years, most central bankers are worried about deflation, not inflation.

In addition, the roaring U.S. equity markets continue to siphon off assets away from alternative investments, including gold, INTL FCStone added.

INTL FCStone

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