Friday, February 26, 2010

Commodities Rise on Falling Dollar

Commodity Prices Rising

The falling dollar gave commodities a boost today, as many raw materials rose as a result of the dollar-denominated factor.

Gold, silver, copper, platinum and palladium all enjoyed price increases with little resistance in a relatively light day of trading.

Another commodity sector rising was energy, where oil, natural gas and gasoline all spiked.

Also joining the other commodity sectors in rising in price were the grains, where corn, soybeans and wheat all moved upwards.

What this shows me is how important the U.S. dollar is to the inflationary pressure we continue to face. While that's nothing new, it does show how just a little weakness in the dollar can drive commodity prices upwards.

It also shows me how vulnerable we are to inflation, and how quickly things can change in relationship to that.

Commodity Prices Rising

Financial Advisor

No comments: