05 Jun '11, 8pm

Investors see risk of sharp falls in some commodities

Investors see risk of sharp falls in some commodities

ZURICH: Weak economic news in key developed economies pushed down commodity prices in early May, and investors are expecting further falls for some commodities, the Bank for International Settlements said on Sunday. While commodity prices had been rising in previous months as investors put their money on assets whose prices could raise with inflation, the "prices of most commodities dropped sharply" in early May, noted the bank for central banks. "Silver prices plunged by 30 percent while oil prices fell by 10 percent during the same period," it noted in its quarterly review which examined the economic situation up to May. "Moderating perceptions of global inflationary pressures following negative economic news in early May from the United States and Germany may have prompted some investors to close out their positions," it noted. "Since then, implied volatility for silver...

Full article: http://www.channelnewsasia.com/stories/afp_world_business...

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