Discussion in 'Trading' started by gurucandidate, Aug 16, 2007.
Would someone comment please?
Have you looked at the price of copper recently?
Yes, I have.
Copper has not made new lows this week, Gold has not either, while BP/USD has been straight down for six days and this what prompted my question.
Im really surprised. I suppose commodities are in a much bigger and longer term bull market than most people think. The fed apparently thinks the samething.
Copper is actually in backwardation.
BTW I have no position in Copper.
There is no substantial correlation to the usd and commodities. Commodity inflation is caused by high demand and speculation by highly leveraged funds. Secondly, the usd is still not very strong in the scheme of things. The flight to quality last week was only diversification from euros after the banking crisis in the eurozone. Until the war in Iraq comes to a close, I would suspect the usd to continue its downtrend.
Thanks for the clarification,
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