Contrarian: Where now for hard-hit commodities?

CONTRARIAN

The eternal optimist might be tempted to think that, because commodities have had such a horrible year, it could not possibly get any worse.

Unfortunately, the prognosis for all things resource related at the moment is unrelentingly grim. At a simple, short-term, technical level, key fund flow metrics look absolutely abysmal. Recent numbers from a range of investment banks that track ETP creations and redemptions suggest commodity ETP outflows are now at their highest level since 2007. It does not take a genius to work out why commodity funds have been having a tough time of late – the collapse in the gold price.   Luckily, buoyant energy prices have come to the rescue, but even that sliver of hope has taken a bashing, as ...