Copper May Slump on Mideast Unrest as Gold Surges

Copper, corn and rubber may tumble in the next six months, while gold climbs to a record $1,500 an ounce as turmoil in the Middle East boosts oil, fuels inflation and weakens Chinese raw-material demand, according to UBS AG.

“There’s more potential for a correction in most of the commodities,” Peter Hickson, global commodities strategist at Switzerland’s largest bank, said by phone yesterday. “There’s a risk. And the risk is driven by concerns over inflation, rising oil prices and uncertainty the Middle East represents.”

Hickson’s comments add to forecasts that the turmoil from Libya to Yemen that’s fueling a surge in energy costs may harm the global recovery and stoke inflation. Goldman Sachs Group Inc. said last month it was “neutral” on commodities in the near term as the unrest has raised concerns that global growth。