J.P. Morgan Says Oil, Gold Will Help Commodities Rebound

Although base metals and silver have hit the skids, gold and oil have held up fairly well. Those two not sinking that much is the reason behind J.P. Morgan forecasting a rebound of commodities in general.

"In the short-term, the macro landscape seems to have taken a turn in recent weeks," Ray Eyles, chief executive officer of the bank's commodities business in Asia, said in an interview. "Ultimately the long-term fundamental supply and demand of commodities is still pointing to higher prices."

By "commodities in general," the Asian commodity department means the commodity index. They also believe there will be a bigger market for commodity buying and hedging in Asia, and are expanding their offices in the region to meet the anticipated increase in demand.

The bank's putting its effort behind its mouth in another way. Morgan announced it will be moving into gold trading in Asia. As for commodity performance, Eyles sais he's most optimistic about energy.