Analysis Topic: Commodity Markets - Metals, Softs & Oils

The analysis published under this topic are as follows.

Monday, November 08, 2010

QE2 to Dilute the U.S. Dollar and Boost Gold and Silver / Commodities / Gold and Silver 2010

By: Bob_Kirtley

We kick off with a quick look at the chart for the USD which now looks set to test the ‘72′ level of support as billions of new dollars dilute it further. However, the indicators suggest that the USD is now oversold, so we could see a small bounce from this point. Any upward move we believe would be short lived as those holdings dollars at the moment must surely be considering their options and making plans to limit their exposure to any further devaluation of the dollar.

Monday, November 08, 2010

China’s Urban Migration Catapults Copper Prices to New Highs / Commodities / Metals & Mining

By: Money_Morning

Don Miller writes: The next phase of China's economic plan is fueling a relentless appetite for electricity, spiking demand for copper. That has moved investors to drive up the price of the metal, as well as the stocks of companies that mine it.

Copper has risen 14% this year, with contracts traded on the London Metal Exchange tripling since December 2008. The Bloomberg index of world mining stocks this year has climbed 16% to the highest level since Aug. 1, 2008, driven by miners like Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX), and Ivanhoe Mines Ltd. (NYSE: IVN)

Monday, November 08, 2010

Gold Testing Resistance to Target $1500 / Commodities / Gold and Silver 2010

By: Rosanne_Lim

In a move to boost a “disappointingly slow” economic recovery, the Fed has finally announced that it will buy $600 billion of US government months over an eight month period to lower interest rates and encourage more borrowing. In addition to this announcement, the Federal Reserve also made it clear that it is ready to do more if growth isn’t achieved in the months ahead.

Monday, November 08, 2010

Silvers Bull Market From $4 to $26 is NOT Deflation / Commodities / Gold and Silver 2010

By: Howard_Katz

Below is a chart of the price of silver over the past 10 years showing the move from $4/oz. to $26/oz.  We call to the attention of Ben Bernanke that silver has been going up.  Prices going up are not “deflation.”

Monday, November 08, 2010

Silver Correction Proved to be Very Short Lived, Targets $36 to $40 / Commodities / Gold and Silver 2010

By: Clive_Maund

Silver's corrective phase turned out to be very short-lived - it only lasted a week before it turned higher again, and then blasted out to new highs on the inflation friendly news from the Fed last week. We can see all of this on the 6-month chart and also how silver is becoming very overbought once more as it approaches the top return line of a tentative parallel uptrend channel - tentative because, like gold, silver is in position to go into parabolic acceleration mode in which, of course, uptrend lines are rendered obsolete, at least temporarily. The current steep uptrend may even approach $30 before silver stops to consolidate/react.

Monday, November 08, 2010

Fed Crosses the Rubicon and Ignites Powerful Parabolic Gold Bull Market / Commodities / Gold and Silver 2010

By: Clive_Maund

The Fed crossed the Rubicon last week with its announcement of another massive tranche of QE (Quantitative Easing or in common parlance money printing), known as QE2. It is thus clear that what is now known as QE1, which was portrayed at the time as "one off rescue of the financial system" was nothing of the kind, but represented instead the bursting of a dam that can never be put back together again. The junkie has graduated to another level, from that of being merely a chronic debtor, unable to live within its means and sponging on the rest of the world, to selling its own future down the river in order to maintain its voracious consumption habits in the present.

Sunday, November 07, 2010

Gold Price Break Out or Fake Out? / Commodities / Gold and Silver 2010

By: Przemyslaw_Radomski

In a now-infamous 2002 speech, Ben Bernanke said: (…) The U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost… Under a paper-money system, a determined government can always generate higher spending and hence positive inflation…

Sunday, November 07, 2010

Gold Nudging $1400, $1600 Not Far Away, $2,600 is Not Impossible / Commodities / Gold and Silver 2010

By: Merv_Burak

We’re just nudging up against the $1400 mark, can $1600 be far away?  That still seems to be the most talked about target although $2600 is not all that impossible.  Let’s see where we are at the present time, technically speaking.

Sunday, November 07, 2010

The Charts Say It’s Time For Gold To Pullback / Commodities / Gold and Silver 2010

By: David_Grandey

Below are the charts of GLD and the USD and their correlation says to expect a pullback to at least relieve the overbought nature in the indexes and gold as well.

Sunday, November 07, 2010

Crude Oil and Silver Curious Market Actions Warrant CFTC Investigation / Commodities / Market Manipulation

By: Static_Chaos

Once again we find some strange activity occurring in these markets from a trading perspective, and it is time that the increased staff and resources of the CFTC enforcement division look into these two markets in particular.

Sunday, November 07, 2010

Swimming In Crude Oil? Record High Inventory Will Continue To Build / Commodities / Crude Oil

By: Dian_L_Chu

Despite the recent price surge in crude oil this week, basically going from $81.50 to $87 a barrel within this week--thanks to a Fed's QE2-induced weak dollar-- oil inventories actually added another 2 million barrels build to the current stockpiles.

These are the highest inventory levels for crude in 2010 and are just shy of the 370 million mark, which will be punctuated next week with another build in crude stockpiles. (See Stocks Chart from the U.S. EIA)

Sunday, November 07, 2010

Uranium and Nuclear Power Investing Mega-trend For the Next Decade / Commodities / Uranium

By: Nadeem_Walayat

Ten years ago the investment mega-trends to get on board where the emerging markets and commodities such as Gold, all clear in hindsight you might say, so what about the mega-trends for the next decade ?

Saturday, November 06, 2010

Federal Reserve Inflating Bubbles Pushing Agri-Foods to New Highs / Commodities / Agricultural Commodities

By: Ned_W_Schmidt

Readily acknowledged is that first action of new U.S. Congress should be to call for resignations of all members of the Board of Governors of the Federal Reserve System.. Their irresponsible acts to date have clearly violated their mandate to provide a healthy economic environment. With Federal Reserve Bubble III, manifesting itself in the inflated and unnatural values for non dollar currencies, distorting the global economic system, they must be removed immediately and most recent policy action nullified.

Saturday, November 06, 2010

Crude Oil and Natural Gas Big News Stories of the Week / Commodities / Crude Oil

By: Global_Intel_Report

European Energy Consortium to Sign Turkmen Gas Deal

A consortium of two European energy companies and a financial institution are seeking to strike a major gas supply deal with Turkmenistan by the end of this month, to bring gas to Europe, bypassing Russia, which has recently experienced some disappointment in its dealings with Turkmenistan.

Saturday, November 06, 2010

Gold and Metal Miners Takeovers Talk / Commodities / Gold and Silver 2010

By: The_Gold_Report

Encompass Funds Portfolio Manager Marshall Berol and Analyst Kevin Puil spend a lot of time examining junior mining companies for investment opportunities and they're pretty good at it. The Encompass Fund was up 139% in 2009 and it's up another 21% so far this year. In this exclusive interview with The Gold Report, we talk to Marshall and Kevin about how they choose junior gold stocks and whether or not the growing number of takeovers is influencing their decisions.

Friday, November 05, 2010

Cotton Inflation Illustrates Savers and Merchants Force to Price Resources in Ever Depreciation Currencies / Commodities / Inflation

By: Adrian_Ash

Savers and merchants worldwide are being forced to price scarce resources in ever-depreciating money...

BLAME speculators, poor weather, global demand, or the Federal Reserve as you choose. Either way, sugar's up, wheat's up, and cotton's new record highs are starting to hurt Chinese textile makers.

Friday, November 05, 2010

Gold And Silver At Crucial Juncture, European Banks Under Pressure As Investors Celebrate QE2 / Commodities / Gold and Silver 2010

By: Submissions

Jeb Handwerger writes: Ben Bernanke has officially announced quantitative easing and the markets are reacting with rising prices amongst all asset classes. "QE2" is practically an economic tool to artificially raise asset prices to prevent deflationary forces. When prices in asset prices decline due to a lack of demand you have deflation. Quantitative easing essentially is a preventive approach for central banks to prevent deflationary forces. This techniques is used when a Central Bank can no longer lower interest rates due to it being to close to zero, so they just print money devaluing the currency and raising asset prices across the board.

Friday, November 05, 2010

Is the Rise in the Gold Price Just a Fall in the Dollar? / Commodities / Gold and Silver 2010

By: Julian_DW_Phillips

As we write, the gold price is about to assault the $1,400 level having been $1,332 on Wednesday of this week, a day ahead of the Fed announcement. Against the pound sterling, the yen the Swiss franc and most other currencies the dollar has weakened too. In the days ahead of that announcement the dollar had been wavering between $1.38 and $1.40 against the euro. After the announcement the U.S. dollar fell quickly down to $1.42 against the euro. But then the dollar recovered and is sitting at $1.41. Recently gold has again moved in the opposite direction to the dollar, until it ran up in the euro vigorously, so has this now changed again? Can there be more to the rise in gold than just the fall in the dollar? We believe so, because far more than QE 2 happened this week.

Friday, November 05, 2010

The United States Needs Uranium, Investors Alert on URZ / Commodities / Uranium

By: Richard_Mills

Uranium, a naturally occurring radioactive element is fairly common in the Earth's crust, groundwater and seawater. Usually found in concentrations of 2-4 parts per million (ppm) it's as common as tin, tungsten, molybdenum, etc. A 1.4 kilometer by 1.4 kilometer area of ground - the equivalent of 640 acres - being .3 meters deep, will contain almost a tonne of uranium.

Friday, November 05, 2010

Gold Hits New Record High as IMF Economist Calls Inflation a Very Good Thing / Commodities / Gold and Silver 2010

By: Adrian_Ash

THE PRICE OF WHOLESALE gold bullion ticked back from a new US Dollar record in morning trade in London on Friday, setting a new all-time-high London Fix of $1384.20 per ounce after what one trader called Thursday's "phenomenal" gains.

European and US stock markets stalled after new data showed a surprise rise in US payrolls, but no change in the 9.6% jobless rate.