The broader commodities complex is set to rebound following several months of weakness, according to a new report from Barclays Capital.
The firm noted that “Investor selling of commodities has intensified in recent weeks and hedge funds have been particularly aggressive…Gross short positions across the major U.S. commodity futures markets are now 30% larger than they were at the start of September and net hedge fund length has halved. Institutional investors have also been unusually active in cutting positions.”
The firm argued that this data is bullish for commodities, from a contrarian perspective. Furthermore, Barclays wrote that “Despite the lack of resolution in Europe, the macro-economic situation elsewhere has brightened considerably. Evidence is mounting that the U.S. is emerging from its soft patch and recent data supports the view that China is heading for a soft landing.”
In light of its view, Barclays predicted that commodities are poised for a “swift rebound.”
“Copper could benefit most from an improvement in the financial-market outlook as prices are trading a long way below fair value,” the firm added. ”We also continue to favor crude oil, corn and aluminum as commodities with the most constructive medium-term fundamentals, while gold looks set to benefit from the renewed concerns over inflation and currency debasement that any cure for Europe’s ills will inevitably fuel.”
Platinum Group Metals Purchases Canadian Platinum Project
- The mineralization is in a well-recognized deposit model known as a "Komatiite Hosted" setting.
- The discovery, made during exploration for diamonds, is notable as it is a first for this part of the Northwest Territories.
- The platinum group metals grades are at the top end of the global ranges for the copper nickel mineralization style.
- Platinum Group Metals will utilize the winter season to review and model all of the extensive project data and establish supplies at the exploration camp for a drilling campaign in the spring and summer 2012.
