NEW YORK, December 30 (FinanceEnquiry.com) - The overall outlook for commodities was disappointing in 2011 as they incurred huge losses, however some assets proved to be strong during the year.
The 2011 started well with gold futures being calm after their 30% surge, silver just experienced an 84% boost and oil's annual gain was pegged at 15%.

It was estimated that gold, silver and oil will touch $2,000, $50 and $100 mark. As the year passed by Gold GC2G and oil as well as CL2G posted marginal year on year gain of +1.40% and -0.06%, respectively. Moreover, future price for silver (SI2H +1.37%), copper (HG2H +1.19%), platinum (PL2J +1.27%), palladium (PA2H +1.96%), wheat (W2H +0.58%), soybeans (S2H +0.31%), cotton (CT2H -0.48%), cocoa (CC2H -0.43%) and sugar (SB2H -1.23%) is gearing for double digit decline for the year, with natural gas leading the chart with more than 30% decline.

According to Frederick Fromm, who is a portfolio manager at Franklin Resources Fund, the last 12 months have been a difficult period because of contradictory indicators and cross-currents. Moreover, Steven Land, portfolio manager of the Franklin Gold and Precious Metals Fund, commented that robust gold prices and other several agricultural products set off the unstable economic outlook that has caused negative impact on economically sensitive fuels and industrial metals.


Moreover, coffee and frozen orange juice futures were also down year to date. While analyzing the whole sector, the Thomson Reuters/ Jefferies CRB Index XX:CRY was down over 8%. Somehow, gold futures were guided 8.4% higher for the year, oil was up 9.1% and milk futures DA2F -0.58%. Despite being traded on thin volumes they stood out higher by over 27%.

The future prices of heating oil (HO2G +0.16%), gasoline (RB2G -0.18%), corn (C2H +0.71%), live cattle (LC2G -0.73%), feeder cattle (FC2H -0.38%) and lean hogs (LH2G -1.81%) are preparing to end the year higher.
Some analysts believe that coming year will be promising and will offer the potential for commodities to rebound and experience further gains.

President of NationalFutures.com, John Person, indicates that by the end of the year it is evident that US economy is progressing way better than that in Europe and this trend might persists in 2012. For Japanese economy, he affirms that it is in the recovery mode after earthquake, tsunami and nuclear disasters. Person highlights that their rebuilding process could initiate a stable demand for steel, copper and coal. He is bullish on crude oil and agricultural sector that includes corn, wheat, and cattle. Moreover, this year