Commodity Blog

Commodity news, technical and fundamental analysis, market data on precious metals, energies, industrial metals, and soft commodities


Gold Advances as Dollar Weakens, Wheat Falls

January 26, 2010 at 1:49 by Vladimir Vyun

Gold prices rose on expectation that the dollar will drop, spurring the demand for the precious metal as an inflation hedge. The U.S currency little changed versus a basket of six major currencies since it reached a five-month record on January 21st. Last week gold slid 3.6 percent, encouraging some investors to buy the commodity. February futures for gold delivery gained $6 (0.6 percent) to $1,095.70 per ounce on the New York Mercantile Exchange’s Comex unit.

Wheat futures tumbled in Chicago on speculation that growing global stockpiles will surpass demand for the grain. Analyst predict that global inventories may jump 19 percent to 195.6 million metric tons by the end of the marketing year on May 31st. Consumption is predicted to increase 0.7 percent to 644.5 million tons. December futures for wheat delivery dropped $0.0025 to $4.9825 per bushel on CBoT.

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