As
in commodity market Crude
prices has
fallen by over 60 per cent since last June. I don't recall any
analyst predicting such price capitulation. It
was a rare and difficult event to foresee but
with crude prices trading at
eight year lows, one of the most crowded trades still remains a sell
on rallies in oil. Every market participant is talking about the new
normal in energy prices, the shale revolution, end of the commodity
super-cycle and the beginning of the end for OPEC member nations and
their pricing power.
Where
else Gold climbed
above $1,300 an ounce on Wednesday for the first time since August
2014 as
a softer dollar, worries about the global economy and hopes of
stimulus measures from the European Central Bank (ECB) fueled demand.
Because the
dollar fell 0.3 per cent against a basket of currencies, mostly due
to a stronger yen after the Bank of Japan kept its monetary policy
steady against expectations for more easing. Well
this
issue seems to be about central banks control of the situation -
there is this impression that things are getting a bit out of control
again. But the
risk here for gold is that tomorrow and then next week at the Fed
meeting they reassert their control.
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