Gold rose back above $600 an ounce yesterday, and oil stood at $73.60 on the New York Mercantile Exchange last night, the highest level for some time.
Considering that commodities are supposed to have crashed, and the great gold recovery is over, it’s not doing half bad.
In fact gold is now almost $40 up from the level it fell to on June 13th. As for oil, with the likes of BP’s Lord Browne talking about the long-term price of oil expected to fall to below $40, it was just beginning to look as if the worst was over. But now it’s back.
For some time we have speculated that gold could see an even bigger comeback, thanks to the declining importance of the dollar. Even Warren Buffet expects the dollar to fall in the long term, and one assumes that the likes of China will eventually sell their dollar reserves and buy something else, and gold has to be a contender.
© Investment & Business News 2013