Epsilon Capital Management Economy Reviews: Global commoditi
LONDON: Many global commodity markets fell this week as traders worried that the Cyprus situation would reignite the eurozone's sovereign debt crisis and dent global demand for raw materials. However, precious metal gold won ground as many investors sought a safe place to park their cash.
"Gold prices have firmed as events in Cyprus have unfolded this week, but the base metals complex and oil prices have come under pressure," said Barclays analyst Suki Cooper.
"A recovery in investor risk appetite is passing commodities markets by. The growth outlook is still not strong enough to support the kind of broad-based pick-up already seen in many other asset classes."
Cyprus is locked in emergency talks with a troika of lenders to save the eurozone member's banking system and economy in general from ruin, and the option of a tax on bank deposits back on the table.
The European Union has given Nicosia until Monday to raise 5.8 billion euros ($7.47 billion) to unlock loans worth 10 billion euros or face being choked from European Central Bank emergency funding in a move that would bankrupt the island.
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