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Recent macro data across regions have been positive giving a more encouraging picture of global growth. Economic activity has picked up in China if July and August data is any indication. The Euro area composite PMI i..

14 Sep 2013

LONDON (Commodity Online):Commodity prices haven't responded positively to positive macro data in the absence of real recovery in demand, according to a weeky review by Barclays Research.

"Recent price gains this year, in our view, have not been driven by demand at all, but rather by a combination of supply concerns (crude oil,tin) and short covering activity (copper, gold)," Barclays said.

Recent macro data across regions have been positive giving a more encouraging picture of global growth. Economic activity has picked up in China if July and August data is any indication. The Euro area composite PMI index rose to 51.5 in August-the highest in two years.

In the absence of a convincing upswing in global growth, trend in commodity complex appears mixed."Further, individual market balances in many
cases (base metals, gold and silver particularly) look unsupportive of sustained price gains. For now, commodities are on the growth borderline, in our view, with recent data a sign of encouragement, rather than a call for strong commodity prices driven by a demand recovery"


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