Commodities demand is 'trend to stay:' Barclays

Commodity assets under management climbed a “robust” US$2.2 billion last month, Barclays Capital said in a report two days ago. Hedge funds and other speculators increased their “net- long” positions, or bets on higher U.S. commodity futures prices, to the most since July 2008, government figures show.

“We have seen right through the year that investor interest in commodities remains strong, and we see this as a trend to stay,” London-based Barclays analyst Amrita Sen said in an e-mail Friday.

Gold climbed to a record US$1,097.72 an ounce Thursday and crude oil and copper jumped to one-year highs last month. The S&P GSCI Index of 24 commodities rose 46 percent this year, rebounding from last year's 43 percent drop after the worst global recession since World War II curbed raw-material demand.

The Standard & Poor's 500 Index of stocks climbed 18 percent this year, after falling 38 percent last year. The US$2.2 billion added to commodities in October was the lowest since July, according to Barclays.

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