Gold set to rebound from five-year low after Paris attacks

LONDON: Gold is set to rebound from a five-year low on Monday while other commodities keep trading on their own fundamentals as the terrorist attacks in Paris won’t change much for global supply and demand of raw materials from copper to coffee.

That’s the outlook from Eugen Weinberg of Commerzbank AG, Fabio Scacciavillani of Oman Investment Fund, and Edward Bell of Dubai-based bank Emirates NBD PJSC for commodities Monday after terrorist attacks in Paris on Friday.

"The implication for the oil market is limited, with the possibility of lower demand at least outweighed by higher geopolitical tensions," Weinberg, head of commodities research at Commerzbank, said by phone from Frankfurt on Sunday. "As for gold, I wouldn't be surprised to see at least a short-term positive reaction on the back of higher risk aversion." Gold futures closed at $1,080.90 an ounce last week, the lowest close since February 2010. A return to $1,100 is possible, Weinberg said.