COMMODITY PRICES ARE FIRM AGAIN, and they are remaining firm despite the fact that the US dollar is correcting a bit this morning. What is interesting to us is that the strength in the past day or two has not been enormous, but it has been quite nearly universal. It is not just gold that is rising, nor is it just copper, nor wheat, nor cotton, but iron ore prices are firm, and so too steel and other industrial commodities. This is worthy of note, and it is especially so in light of the fact that Baltic Freight is showing signs of holding firm even as oil tanker and dry bulk shipper equities are firming materially. When Baltic Freight, Frontline and Dryships all turn for the better, attention must or should be paid.

We turned to become buyers of gold yesterday, returning to this market for the first time in some while. Having traded to $955, gold has settled back to $947 as we write, and appears to be consolidating… correcting… yesterday’s sharp rise. Interestingly gold is hold reasonably steady even as the dollar rallies from its low, so the price of gold in EUR terms is actually strengthening.

Note then the chart of gold in EUR terms this page. Having made its high at €800 back in early February, gold has weakened to, but has held at, €650. Too it has held at its 200 day moving average in EUR terms, making €650 all the more important. As we write, gold is trading €668, and a move upward through €700 would be most impressive. Shall that happen this week?

Doubtfully so; but should it, we would be most impressed. Everyone would be.