Author: 24 Mar 2012 Last updated at 12:32:49 GMT

Short term risks for precious, base metals but patience to be rewarded

LONDON (Scrap Monster):  Short term risks to precious and base metals investors’ “patience to be rewarded” in the longer term, said TD Securities in a briefing.

Slowing income growth in China, higher taxes on gold imports in India and dying hopes of more U.S. quantitative easing mean short-term downside risks to gold, TDS said.

Less-robust demand in China and any disappointments in U.S. economic data mean risks for platinum, palladium, copper and other industrial metals, TDS says. Still, TDS describes the commodity picture as “positive” for the longer term.

“With the Fed likely keeping interest rates at record lows well into 2014 and recent massive Fed/ECB monetary base expansions not getting unwound anytime soon, the global financial system will be flush with cash for the foreseeable future,” TDS added.

“Also, with the global economy expanding in a more solid way in the second part of the year coupled with energy remaining high and feeding into inflation, investors should get more excited about gold as a safe haven well into 2013,” they continued.

Meanwhile, industrial metals should draw support from easier monetary policy and government fiscal action in China, plus a Western world recovery that tightens these markets and lifts prices.

 “Supply constraints present in the palladium and copper markets will likely make these commodities join the group of the biggest winners this year,” TDS concluded.

METAL PRICE CHARTS

GET PRICE CHARTS

9ct Gold Scrap Price Charts

14ct Gold Scrap Price Charts

22ct Gold Scrap Price Charts

RELATED NEWS

German scrap prices rise further in May: BDSV

May 28th 2015 02:04 AM
German scrap prices rise further in May: BDSV
As per the latest statistics provided by the German Steel Recycling Federation (BDSV)

India's scrap imports surged during Jan-Feb 2015

May 27th 2015 08:37 AM
India's scrap imports surged during Jan-Feb 2015
The scrap imports by India during the initial two months of the year increased sharply when compared with

Tokyo steel's H2 scrap purchasing prices up

May 27th 2015 02:56 AM
Tokyo steel's H2 scrap purchasing prices up
The country's top producer of H-beams- Tokyo Steel has announced further hike of ¥ 500/ton in scrap purchasing prices

BIR Convention predicts modest rally in stainless steel scrap prices

May 26th 2015 06:44 AM
BIR Convention predicts modest rally in stainless steel scrap prices
The delegates at the 2015 BIR Convention held in Dubai, UAE indicate that stainless steel scrap prices are unlikely to…
Scrap Item Price Unit
6063 Extrusions 0.77 $US / Lb
Zorba 90% NF 0.61 $US / Lb
6061 Extrusions 0.70 $US / Lb
Old Sheet 0.54 $US / Lb
Al/Cu Radiators 1.31 $US / Lb
Old Cast 0.54 $US / Lb
Next Story