Sunder’s List: Bye Bye Commodities?

Roundup: S&P +0.47%, Dow +0.14%, Nasdaq +0.86%, Gold $1,429.50, London -0.09%, Germany +0.24%, France flat. Nikkei at pixel: -0.28%, Hang Seng: -1.15%

Flash China Manufacturing PMI at 50.5 (51.6 in March). Two-month low. New export orders contracted suggesting external demand for China’s exporters remains weak. Weaker overall demand has also started to weigh on employment in the manufacturing sector. (Markit)

The US yield curve says investors have given up on inflation. The TIPS yield curve has been turning structurally negative and this has been affecting commodities. (FT)

Fluctuation in gold prices will not have any significant impact on the portfolios of gold loan companies… say gold loan companies. (ET)

Asia is witnessing one of the strongest waves of physical gold buying in 30 years. The feverish buying has left many of Hong Kong’s banks, jewellers and even its gold exchange without enough yellow metal to meet demand. In Shanghai, the gold exchange saw volumes – often seen as a proxy for demand – rising to a record on Monday, while queues formed outside some jewellery shops in Beijing. (FT)

Speaking of gold, the RBI’s gold stock of about 400 tonnes has appreciated 41% since it bought 200 tonnes in October-November 2009 from the IMF. So we can now pledge 400 tonnes of gold the next time we have a balance of payments crisis. (ET)

Good luck!


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