Gold and Copper May Have More Room to Run in 2018, Bank of China Says
Where to Make Big Money in Commodities, EnergyThe stage may be set for commodities to extend their stellar gains, according to Bank of China International analysts.
By the fourth quarter copper will average $7,500 a ton and gold $1,400 per ounce, they wrote in a note this week, as financial drivers potentially outweigh fundamentals in 2018. In other words, the stars may continue to align for raw materials.
“In a world of upbeat economic growth, USD weakness, falling bond prices and elevated equity valuations, the commodities revival should come into full bloom,” said analysts led by London-based Xiao Fu, the commercial bank’s head of commodity market strategy.
The prediction could prove well-timed. China’s wariness about Treasuries would appear to be giving new fuel to dollar bears and driving down bonds, while gold hit the highest in about four months earlier on Wednesday. The global stock rally seems to be taking a pause as investors assess recent moves following six days of gains for the MSCI All World Index.
Copper was at $7,153 per ton as of 6:04 p.m. in London, while gold rose 0.4 percent to $1,318.67.
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