Commodity Prices Going Up
Commodities had been taking a hit because of the indecision of Europe over the sovereign debt crisis in Greece. Now that a plan is in place to help Greece if they need it in the months ahead, commodities rebounded today in response to the news.
As far as the support from Europe, it's more of a support mechanism rather than loans offered to Greece in the present. It may or may not ever be used by Greece, but it's there as a backstop if the need ever arises. It also keeps many of the politicians in the region out of hot water with their constituents who largely opposed bailing Greece out.
If Europe is able to integrate better politically and learn from this crisis, gold should be a strong beneficiary, as it tends to move up when the euro is stronger and down when it is weaker against the U.S. dollar.
Almost all commodities responding be moving up in price on the news.
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