Tags: commodities | gold | market | oil

Market Advisers: Some Commodities Deserve Attention

Wednesday, 19 Feb 2014 07:37 AM

By Dan Weil

After falling during the past three years, the Dow Jones-UBS Commodities Index has rebounded 5.6 percent so far this year.

And analysts say now is a good time to look at select commodities.

"The approach we're taking is to selectively invest on a limited basis in parts of the market where supply and demand dynamics are looking more favorable," Stephen Jury, global head of currencies and commodities at J.P. Morgan Private Bank, told The Wall Street Journal.

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He's bullish on crude oil, palladium and platinum.

Sugar, coffee, aluminum and nickel recently stood at multi-year lows. "We've seen a real supply glut in these markets, something that should start to reverse course later this year as the impact of low prices drives marginal production out of the system," Edward Meir, a senior consultant at commodities broker INTL FCStone, told The Journal.

Meanwhile, after plunging 28 percent last year, gold has jumped 9.5 percent so far in 2014. The April Comex gold contract settled at $1,320.60 Tuesday.

"We think that investors have seen the worst of the liquidations and that gold prices will trade in a relatively tight range in 2014," said Mihir Worah, head of real-return portfolio-management at Pimco, according to The Journal.

With gold now at a three-month high, many investors are bullish on the metal.

"The underlying notion that central banks are slowing down their quantitative easing is boosting gold's appeal as an inflation hedge and alternative currency," Adam Sarhan, CEO of Sarhan Capital, told Reuters. "Gold could go start a new upward trend following a bottoming process in the last six months."

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