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UBS: Buy Gold and Sell Copper on 3-6 Month View

Tuesday, 10 July 2012
* UBS AG said investors should buy
gold and sell copper on a three to six month view.

* It recommends buying oil and selling copper on a three-year
view, according to an e-mailed report from the bank dated
yesterday

* Industrial-Exposed Metals May Bottom in 3Q: Morgan Stanley; 'A floor may be in sight' for
industrial-exposed metals such as base metals, silver and
platinum, Morgan Stanley head of commodities research Hussein
Allidina writes in note

Morgan Stanley

• Sees 3Q as bottom for most recent price correction; cites supply response, fundamentals

• Prefers copper; has long positions open in gold, silver and copper

* Blue Phoenix Financials: We are bullish on all four commodities: Gold, Copper, Silver and Crude Oil within a three year time frame. In the short term (3 to 6 months): Crude Oil and Gold. Silver and Copper will take time to develop into an upswing. Having said that Investors should take note that in the Jan-June period, China Copper Imports Rose 47% on Year to 2.5m Tons.

* Morgan Stanley: Record exports of refined copper from China are set to slow and stockpiles in nearby South Korea
may drop as public-works projects from Beijing to Chengdu are stepped up to counter an economic slowdown

* China’s investment in power and heating producers and
suppliers amounted to 392.5 billion yuan ($61.6 billion) in the first five months, up 17.2 percent from a year earlier,
according to the National Bureau of Statistics. The country’s refined exports were 102,375 tons in May compared with imports of 301,990 tons. Holdings in LME-approved sites in South Korea totaled 85,175 tons, data showed yesterday, unchanged from the figure on July 6 and the highest level since Oct. 14.

* Benchmark three-month copper futures dropped 9 percent on
the LME in the second quarter, and traded at $7,513 a ton
yesterday. China, where economic growth has decelerated to the slowest pace in about three years, accounts for 40 percent of global consumption, according to Freeport-McMoran Copper & Gold Inc., the world’s biggest publicly traded copper miner.

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