Only asking as there was an article in the Investors Chronicle which proposed that it did. Wrong cause-effect relationship here or not?
http://www.investorschronicle.co.uk/con ... 05108.html
Does a weak dollar lead to rising commodity prices?
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Re: Does a weak dollar lead to rising commodity prices?
Can't get to the article 'cause you need a key, but...dispassionate wrote:Only asking as there was an article in the Investors Chronicle which proposed that it did. Wrong cause-effect relationship here or not?
http://www.investorschronicle.co.uk/con ... 05108.html
Depends which commodites we're talking about don't you think? The Metals, in particular Gold and Silver, didn't like the gain in the dollar today (12/15/06) or was that more a reaction to the low inflation numbers earlier in the day? Or both?
These causal explanations I find are best left to the pundits on CNBC - which of course I never watch. Sometimes it makes good locker room conversation - but it has never helped my trading. Two cents worth.
Influence of Dollar on Commodities Prices
It seems to me that commodities for hard assets such as metals, energies, etc. ought to go up/down when the dollar goes down/up for markets denominated in dollars.