MCX Gold Set For Worst of Stock markets Edge Up

Many Stock commodities were set to end May with their worst showing in years as investors sold off in the sector amid doubts about demand for raw materials and as Europe grappled with a simmering debt crisis. Some Stock markets inched higher on Thursday, but that did little to ease the losses inflicted during the rest of the month as investors worried about a fragile U.S. economic recovery and hesitation in China to aggressively pump up a similarly sluggish economy. More information about stock market visit my site

The Thomson Reuters-Jefferies CRB index, a global benchmark for commodities, was set to end the month with a 12% loss and at its lowest point since September 2010.
"I'm happy, I'm making a lot of money on that. My managers have been positioned on the short side," said Gabriel Garcin, portfolio manager at Europanel Research & Alternative Asset Management in Paris, which invests in European hedge funds.

MCX Gold was on track to post its worst May performance in 30 years, with bullion's safe-haven appeal crushed by a firmer dollar as Europe's woes pushed the euro to two-year lows.

"Until markets can see some light at the end of the tunnel, there's no compelling reason to be too long in risk assets," said Vishnu Varathan, market economist at Mizuho Corporate Bank.

Stock Commodities have seen strong outflows from investors in recent months, a sharp contrast to the massive inflows during most of the past decade as institutional investors sought to capture strong growth in emerging markets and diversify their portfolios.

"Markets are still divided on what kind of stimulus China will be able to provide. In any case it doesn't look like it will be a credit bonanza that the global economy can feed off on," Varathan said.

MCX Gold

Spot gold inched higher above USD 1,570 an ounce, but was looking to stretch its losses to a fourth month, matching a similar run from October 1999 to January 2000 when MCX gold traded below USD 300.

Rather than acting as a safe haven and moving in line with the dollar and government bonds, as it did for much of 2011, MCX gold has traded more in line with other commodities of late.

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