The Next Big Move in Commodities

I have maintained for some time the overall raw commodity sector will, in the not-too-distant future, resume a bullish phase that will push most commodity market prices higher in 2012. But there are now some headwinds for raw commodities that cannot be ignored and also must be overcome for a bullish cycle to resume.

From a fundamental perspective, the resurgence of the U.S. dollar against the other major currencies of the world the past few months has been a bearish weight on the raw commodity sector. Most major world commodities are priced in U.S. dollars. When the greenback appreciates it makes those commodities more expensive to purchase with currencies other than the U.S. dollar. If the dollar continues to appreciate then raw commodities will only become more expensive for most of the world to purchase....315 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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