{"id":297515,"date":"2010-02-09T07:36:00","date_gmt":"2010-02-09T12:36:00","guid":{"rendered":"e2249889-c78b-43e3-9643-b1d7d4aa587b:393289"},"modified":"2010-02-09T07:36:00","modified_gmt":"2010-02-09T12:36:00","slug":"weak-euro-tough-on-copper-gold","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/297515","title":{"rendered":"Weak euro tough on copper, gold"},"content":{"rendered":"

What a difference a couple of months make. <\/p>\n

At the end of the last year, a weakening U.S. dollar was giving a charge to commodities, with gold hitting record highs, oil back above US$80 and copper and other base metals boasting triple-digit gains from earlier in the year. <\/p>\n

But these days, it's like markets have been turned upside down: The greenback is surging and commodity prices are in retreat.  <\/p>\n

Larry Jeddeloh, the founder and chief investment officer of Minnesota-based TIS Group, doesn't see much hope for another about-face in favour of commodities anytime soon. <\/p>\n

With a weak euro expected to get even weaker as the European Union struggles to deal with the sovereign debt crisis in Greece and potentially other PIGS nations like Portugal and Spain, he predicts the U.S. dollar will continue to strengthen, in turn driving commodity prices even lower. <\/p>\n

"I do not think this decline in commodities is done," he said in a note to clients. <\/p>\n

He recommended being short copper and "pretty much all base metals" for the next little while, noting price action in copper suggests investors are being forced to sell. <\/p>\n

"Forced liquidations are the most difficult to handle because until prices collapse and the last seller is out of the way, it is hard to know when the selling will end," he wrote. <\/p>\n

Gold, meanwhile, is trading under similar pressure and could trade down to US$1,030 per ounce before dropping further to US$900 to US$950.   <\/p>\n

"At those levels, gold becomes interesting as oil does in the $60-$65 range," he said. <\/p>\n

David Pett<\/a>
<\/p>\n","protected":false},"excerpt":{"rendered":"

What a difference a couple of months make. At the end of the last year, a weakening U.S. dollar was giving a charge to commodities, with gold hitting record highs, oil back above US$80 and copper and other base metals boasting triple-digit gains from earlier in the year.  But these days, it's like markets have […]<\/p>\n","protected":false},"author":4060,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-297515","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/297515","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/4060"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=297515"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/297515\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=297515"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=297515"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=297515"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}