Commodity Blog

Archive for November 12th, 2009

Coffee prices touched the lowest level this month as the dollar rebounded, erasing the attractiveness of commodities as a hedge against inflation. The dollar rose for a second day versus a basket of six major currencies, rebounding from a 15-month low. The price advanced 21 percent this year, before today, because of low supplies from Brazil, Colombia and Central America. March futures for Arabica-coffee delivery slumped $0.005 (0.4 percent) to $1.353 per pound as of 10:16 on ICE.

Wheat advanced, erasing previous losses, as demand rises amongst hedge funds and other investors for the futures as an inflation hedge. Need for food ingredients don’t fall much during inflation periods, thus making wheat quite a safe investment. Speculation suggests that wheat will fare better than other investments as the dollar declines. December futures for wheat delivery advance $0.0475 (0.9 percent) to $5.5675 per bushel by 11:40 on the Chicago Board of Trade.

Latest commodity prices (ICE, NYMEX, CME) as of 19:24 GMT:

Oil (Brent) — $76.15
Gold — $1,108.43
Silver — $17.34
Palladium — $348.77
Platinum — $1,375.75
Copper — $6,497.00
Aluminum — $1,948.00
Nickel — $16,220.00
Zinc — $2,152.00
Cocoa — $3,076.00
Sugar — $22.73
Corn — $390.50
Soybean — $38.72

This gold trading technical analysis video brings up the update of the current market situation with this popular commodity. The author of the video demonstrates an inverted Head and Shoulder chart pattern that formed on a daily chart since March 2008 and triggered a strong bullish trend in early October this year. The technical analysis suggests next long-term targets at $1,250-$1,300 per ounce. But the speculative and highly emotional nature of the bullish gold market can push it significantly above those levels.