Commodity to Buy is Copper: Streible

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Dec. 19 (Bloomberg) -- Phillip Streible, Senior Commodities Broker at RJO Futures, puts futures in focus with an outlook for both gold and copper, and which commodity to buy in "On The Markets." He speaks on Bloomberg Television's "In The Loop." (Source: Bloomberg)

We saw gold dipped below $1200, but it has gone back up above that level.

Clearly, that is support for now.

It will be data-driven.

I think the fed will continue to taper at about $5 billion per month going out to 2014. you will see gold do this stair step ladder down.

With the data coming out, whatever you get this weaker data, you will see these pops up.

But i think the downward trend will continue and continue to strengthen.

Most traders will look at dumping their gold holdings for years and.

In 2014, i think the target of $1050 will be reasonable.

Will there be a bull market rally in between their?

Because of the data coming out, if we do see some unexpected mrs.

On the jobless numbers and you also see be -- some unexpected misses on the jobless data numbers and you also see other things converging, we may.

But bernanke indicated they will begin to let off the gas pedal.

And tapering because of positive signs, particularly here in the u.s. you do like one metal, and that is copper.

Why?

If you look at the supply and demand structure, supplies continuing to climb.

Indonesia controls one of the largest copper mine.

They will shut off exports coming january 1. and manufacturing will continue to expand in china, the u.s., and the eurozone.

Copper prices have held in there pretty well.

They are backing off just attached here today.

I think you could have a tight stop on it down to $3.17. but i think copper will be the metal that shines through 2014. how much do we look at copper tied to the u.s. economy, particularly housing and auto sales?

Definitely auto sales have been picking up.

They have been picking up a little bit better in the eurozone.

That will reflect latin him and palladian -- latin -- platinum and palladium.

If we get kind -- that kind of confidence with builders, then you will see copper really take off.

Thank you so much for today's futures in focus.

We are on the markets once again in 30 minutes.

Market makers is up next.

? live from bloomberg

This text has been automatically generated. It may not be 100% accurate.

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