Ray Eyles, chief executive officer of the JPMorgan Chase commodity business in Asia, told the news service in an interview that the strongest commodities these days are correlated with energy because of Japan's nuclear crisis and anti-government protests in North Africa and the Middle East.
"Ultimately, the long-term fundamental supply and demand of commodities is still pointing to higher prices," Eyles said.
Gold futures last month set all time highs of $1,577.57 per troy ounce. Since December 2008, the precious metal has more than doubled in price while crude oil futures have at least tripled in price. Gold futures thus far this year are up about 5.2 percent after having skyrocketed in value 30 percent in 2010.
"What people tend to underestimate is how strong and how far the market can go when there is a limited supply to match a very heavy demand," Eyles said. "We continue to build our gas, coal and power franchises in the region as well as physical oil and investor businesses."
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