Sunday, May 1, 2011

The Ascent of Gold and Oil

Dominic Schnider,head of commodities research at UBS Wealth Management,explains that gold strength is driven by dollar weakness.I haven't seen any real signal of an attractive real interest rate.Precious metals will look really quite compelling.
UBS has a 12-month forecast for gold of 1650.00 an ounce.Gold is the right choice for investors.Silver will end in a bloodbath.
We're looking at probably 120.00 a barrel for West Texas Intermediate crude.To lower the price,we need to see less growth in demand given the structural supply problems that we have now.Oil at 120.00 is easily in the cards.We need to see deceleration of demand growth,Mr.Schnider emphasized.
Both oil and gold rose in Monday morning trading despite the death of Osama bin Laden.
Australian mining titan BHP Billiton Limited gives broad exposure to natural resource extraction.Kinross Gold,a Canadian miner,is currently considered one of the best values in the industry.
Union Bank of Switzerland(UBS),BHP Billiton Limited(BHP),Kinross Gold(KGC)

No comments: