Commodities Thoughts
Written by A Forex View From Afar on Tuesday, February 19, 2008Back to www.thelfb.com
As we are told, we are very close to a recession in the US, and usually, during these periods the demand side of the economy slows, as demand drops. With all this commodities this time around are not getting affected by this; Gold and Oil are almost at historical highs, $926 and $97 while other commodities are already at the top. Maybe commodity Traders don’t read financial news, they are seeing the bright side of things, or the Global economy is way ahead of the US and continuing the expansion-lead rally in Commodity prices..
Oil has traded above $90 barrel since November, while gold is holding above $900, and has done for a month now. As soon as the recession fears are forgotten, it is very likely Commodities will get more expensive. Better keep an eye on them, as well as on the Cad and Aussie, both currencies could be getting ready for a period of Trending Trade.
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