ID :
157297
Fri, 01/14/2011 - 19:42
Auther :
Shortlink :
https://oananews.org//node/157297
The shortlink copeid
GOLD, OIL & METAL PRICES TO SURGE DUE TO RISING DEMAND IN EMERGING MARKETS
KUALA LUMPUR, Jan 14 (Bernama) -- Rising demand in emerging markets,
weakening US Dollar, coupled with natural disasters like in Brisbane, Australia,
which dampen output will continue to push up gold, oil and metal prices.
"Global economic growth, led by emerging market demand, and improving
fundamentals in the developed world will buoy prices," says Steven Yong,
Citibank's head of investment strategies and research and wealth management
product.
He said gold price could average to US$1,503.60/oz this year and
US$1,438.20/oz
next year, while West Texas intermediate (WTI) prices could average above US$100
per barrel in 2011 and 2012.
"But it is unlikely for oil price to surge to its historic high level of
US$147 per barrel as the global economy is yet to be as strong as in the past,"
he said.
Further gains are also anticipated for most base metals prices in the short-
and medium-term, with preference for aluminium and copper, he told a press
conference.
"This is mainly due to again strong emerging market demand, especially
increasing consumption in China and India and some supply constraits," he said.
Yong said demand from developed nations such as the United States and Europe
could also drive up base metal prices as the economies improved.
Hence, investors should look out for countries, which would benefit from
this trend, like Brazil and Russia, with the former among the lowest cost
producers in agriculture commodities, steel, iron ore and pulp.
"Infastructure spending is expected to rise amid the 2014 World Cup soccer
tournament and 2016 Olympics. Hence, a strong 4.5 per cent growth is expected
this year and next year in Russia," he said.
Yong said oil price was a strong driver in the Russian equity market, with
the energy sector making up over 40 per cent of its gross domestic product
(GDP), nearly 70 per cent of the Russian equities market.
Besides, Russia has one of the cheapest valuations among emerging markets
of seven times forward earnings as of Dec 7, 2010.
Yong also said the current catastrophy faced by Australia, which has
affected its coal production, has benefited countries like Canada.
Flood-hit Australia will see its GDP sliding by 0.3 per cent this year, he
added.
-- BERNAMA
weakening US Dollar, coupled with natural disasters like in Brisbane, Australia,
which dampen output will continue to push up gold, oil and metal prices.
"Global economic growth, led by emerging market demand, and improving
fundamentals in the developed world will buoy prices," says Steven Yong,
Citibank's head of investment strategies and research and wealth management
product.
He said gold price could average to US$1,503.60/oz this year and
US$1,438.20/oz
next year, while West Texas intermediate (WTI) prices could average above US$100
per barrel in 2011 and 2012.
"But it is unlikely for oil price to surge to its historic high level of
US$147 per barrel as the global economy is yet to be as strong as in the past,"
he said.
Further gains are also anticipated for most base metals prices in the short-
and medium-term, with preference for aluminium and copper, he told a press
conference.
"This is mainly due to again strong emerging market demand, especially
increasing consumption in China and India and some supply constraits," he said.
Yong said demand from developed nations such as the United States and Europe
could also drive up base metal prices as the economies improved.
Hence, investors should look out for countries, which would benefit from
this trend, like Brazil and Russia, with the former among the lowest cost
producers in agriculture commodities, steel, iron ore and pulp.
"Infastructure spending is expected to rise amid the 2014 World Cup soccer
tournament and 2016 Olympics. Hence, a strong 4.5 per cent growth is expected
this year and next year in Russia," he said.
Yong said oil price was a strong driver in the Russian equity market, with
the energy sector making up over 40 per cent of its gross domestic product
(GDP), nearly 70 per cent of the Russian equities market.
Besides, Russia has one of the cheapest valuations among emerging markets
of seven times forward earnings as of Dec 7, 2010.
Yong also said the current catastrophy faced by Australia, which has
affected its coal production, has benefited countries like Canada.
Flood-hit Australia will see its GDP sliding by 0.3 per cent this year, he
added.
-- BERNAMA
