Crude to go soft; copper and coal will strengthen: UBS

Commodities have been having a home-run, thanks to the uncertainty in economic growth and the volatility in equity markets. Gold has raced Hercules up the hill with silver in tow. Copper is seen softening globally, but analysts predict that it could look up to the sun too. Nevertheless, crude has been grabbing all attention since the Libyan crisis and the cut in production from Organisation of Petroleum Exporting Countries (OPEC). While investors wait with bated breathe for prices to fall, it has been bucking the trend till date.

Tom Price, global commodity analyst at UBS Equities Research joins CNBC-TV18 to provide clarity on the commodities market and tell investors how to trade the various elements.
He says that the price of black gold (crude) could dip further if the Libyan issue is not resolved, purely on sentiment basis, since the nation is not really that significant as far as fundamentals of the oil markets are concerned. "The buying in US was triggered by uncertainty over slowdown in growth and high inventories," he explains. Price is bullish on thermal coal at the moment, but says that copper offers protection to investments in a three to six month period.