The Buzz: Gold and oil down. But not out?
Oh sure, fans of the New Orleans Saints are partying today following their team’s first Super Bowl victory. But investors in commodities who’ve made big bets on black gold (oil) and real gold can’t be in as festive a mood.
The price of gold has dipped 4% so far this year and is down nearly 15% from its all-time high last December. Meanwhile, oil prices are down 10% in 2010.
Not surprisingly, the pullback in commodities is taking place as the dollar has strengthened against other currencies, particularly the euro. The weakness in the greenback last year helped fuel the runups in oil and gold.
Oil, which is priced in dollars, tends to move higher when the dollar is weak. And gold, thanks to being a tangible asset, often does well when people doubt the dollar. [Read the full article]
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Quotes and other information supplied by independent providers identified on the Yahoo! Finance partner page. Quotes are updated automatically, but will be turned off after 25 minutes of inactivity. Quote data delayed 15 minutes for Nasdaq, NYSE and Amex. Real-Time continuous streaming quotes are available through our premium service. You may turn streaming quotes on or off. [Read the full article]
The dollar traded significantly higher in the second part of the last week, when stocks and commodities turned sharply lower. The USD gains have been powerful against the majors, which could be just a small part of USD bullish moves in 2010, if stocks and commodities continue to decline.
The most widely traded pair, EUR/USD, was extremely weak over the past week, after financial concerns came from Greece and other European nations.
The four-hour EUR/USD chart shows a sharp decline from the 1.4578 top to Friday lows at 1.3583. That move can be counted in two ways, where both look valid and suggest lower levels to follow over the coming weeks, and months if equities hold lower, and economics continue to weigh on sentiment for global growth.
Both main wave counts #1 and #2 signal at least day or two of euro recovery, before USD bulls may accelerate on the strength of global risk aversion and weak equity market trade. [Read the full article]