- Who Were the Biggest Winners And Losers This Year?
- GE, Comcast Complete Deal Over NBC Universal: Source
- US May Raise Rates Before Jobs Recover: Fed's Plosser
- Cramer: Watch Tech Stocks Wednesday
- Stocks Likely Don't Need Santa to Keep Rally Going
- Larry Kudlow's Open Letter to Tiger Woods
- Super Fantasy Christmas Gifts of 2009
- AIG Slashes US Debt Under Deal With New York Fed
- Seamstress Fined $5.7 Million for Insider Trading
- 8 Stocks to Gain on Obama's Afghan Plan: Analysts
- BofA On Proposed Changes In The Housing Bailout Program
- The Future of The Media Landscape
- November Auto Sales Muddle Along
- Busch: What Obama Won't Say Tonight
- Stick with Equities—Avoid Emerging Markets: Laszlo Birinyi
- Pfizer Chomps On A Carrot
- Predictions 2010: Technology
- Predictions 2010: Consumers
MOST SHARED
- GE, Comcast Complete Deal Over NBC Universal: Source
- Keeping America Great
- GM Removes CEO Henderson; Whitacre Will Be Interim Chief
- December To Remember?
- US Mint to Suspend American Eagle Gold 1-Ounce Coins
- Oil Tomorrow
- Is Australia Moving Too Quickly in Hiking Rates?
- Predictions 2010: Technology
- Trading 2010: Gadgets
Swine flu could affect commodities prices, especially oil, as demand may shrink on fears of a further economic slump because of a worldwide epidemic, Eugen Weinberg, senior commodity analyst at Commerzbank, told CNBC.
"The fear of pandemic in Mexico could lead to lower production of oil [US@CL.1
Loading...
()
]. It's more about the indirect effect which has an impact on the whole commodities space," Weinberg told "Squawk Box Europe."
"People are afraid the green shoots of recovery might be really dampened," Weinberg added.
But if the outbreak turns out to be less dangerous than feared and concerns were overplayed, "the risk appetite might return to the market, and the dollar might weaken and equity markets might recover, which will also lead for a recovery in the commodities space," he said.
"I think commodities are about to stabilize at around these levels, especially oil, and in the third and fourth quarter I expect further recovery," he explained.
He is bearish on gold for the short term, because although imports to Dubai have increased, imports to India, the world's largest importer of gold, went down by almost 90 percent from last year.
Demand for jewellery is low and, "as long as the fear on the market is not there and demand from investors for the insurance against the market risk is not there, we'll probably see further market corrections," according to Weinberg.
He expects gold prices [US@GC.1
Loading...
()
] to drop to about $800 in the summer from the current level of about $894, but to recover to $900 or even $1,000 an ounce in the first quarter of next year.
At the same time, prices for base metals have reached a bottom, and copper is likely to end the year higher, Weinberg said.
- Will the Fed raise rates? Will the dollar continue its slide? CNBC experts weigh in on the year ahead.
- Goldman Sachs has forbidden employees from gathering in private holiday parties of 12 or more.
- Do you have what it takes to run your own business? Ask yourself these questions.
- Heavily armed pirates in Somalia have set up a sort of stock exhange to fund their hijackings.
- Since its launch in 1998, Google has become a primary force on the Internet. How much do you know about the company?
- A famed author has written all his work on an old typewriter that is now up for auction. The NYT reports.











