Thursday, August 30, 2007


Important industrial commodities like copper, alumunium, zinc, lead
are correcting fearing slowdown in the global demand following recent fears of U.S.sub-prime mortgage mess and subsequent fall in home sales in the U.S. Also aiding the fall is losses by some hedge funds which have gone long in these commodities are now selling in order to contain mounting losses. Crude oil after remaining soft for few trading sessions is again inching up towards the U.S.$75 Dollar per barrel mark. Yen carry trade un-winding is also having a negative effect on these commodities. From inflation point of view, it's good to have these commodities on softer patch. Gold is extremely range bound between U.S.$660 To U.S.$675 per ounce.