Sunday, January 07, 2007

Commodity prices starting 2007

Gold , oil and other commodities have taken a hit the start of the year. Is this a needed correction or more of a longer trend?

There is a lot of feeling among the commodity followers that there is another bull run ahead and its a timing issue to pick your spot to get in . But as always with any market trend there are varying opinions
According to a recent article on Bloomberg- " Fifteen of 31 traders, investors and analysts surveyed by Bloomberg from Sydney to Chicago on Jan. 3 and Jan. 4 advised selling gold, which fell 4.9 percent last week in New York to $606.90 an ounce, the biggest percentage decline since October. Twelve respondents said to buy, and four were neutral. "
http://quote.bloomberg.com/apps/news?pid=20601087&sid=aTGrJXO9Op4w

To reflect the sentiment in the resource sector - the Canadian stock market is good indicator of the market reaction as Canadian stocks fell and had the worst start to a year since 2000

But as I said, there are still a lot of bulls thinking the commodities will recover and rebound to new highs

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