Metal prices return to being driven by fundamentals
By Yaser Anwar, CSC of Equity Investment Ideas
Analysts at Dresdner Kleinwort Wasserstein say that metal prices are likely to return to being based on fundamentals going ahead.
In a research note published this morning, the analysts mention that although Dresdner Kleinwort Wasserstein’s demand/supply indicator points towards current metal prices being at a structurally higher level than they were five years back, this higher level is substantially (15%) lower than the current metal prices. The recent surge in global liquidity pushed commodity prices up, the analysts say. Now that the global and emerging market monetary conditions are contracting, metal prices should return to being driven by fundamentals, Dresdner Kleinwort Wasserstein adds.
http://www.equityinvestmentideas.blogspot.com/
Analysts at Dresdner Kleinwort Wasserstein say that metal prices are likely to return to being based on fundamentals going ahead.
In a research note published this morning, the analysts mention that although Dresdner Kleinwort Wasserstein’s demand/supply indicator points towards current metal prices being at a structurally higher level than they were five years back, this higher level is substantially (15%) lower than the current metal prices. The recent surge in global liquidity pushed commodity prices up, the analysts say. Now that the global and emerging market monetary conditions are contracting, metal prices should return to being driven by fundamentals, Dresdner Kleinwort Wasserstein adds.
http://www.equityinvestmentideas.blogspot.com/
posted by douglas mcintyre at 4:21 AM
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