Commodity Daily News

Physical Assets and Stocks Decline as Investors Seek Safety

The prices of physical assets and global stocks ended Tuesday lower on the day as traders largely began to speculate an imminent reprisal from al Qaeda following Osama bin Laden's death. The result has been a moderate dip in stock prices, also weighing on the price of assets like oil, silver, gold, and a variety of industrial metals. The biggest gainers on the day were the Swiss franc and Japanese yen, making strides from the shift in sentiment.

As for today, crude oil traders may want to consider that commodities, which are linked to the value of the US dollar, are likely going to continue receiving a boost in the immediate future due to recent monetary policy statements out of the US. Hawkish statements about economic growth may suffice to hold prices stable between $111 and $115, but many speculators are beginning to anticipate another bull run in commodity prices, but timing is everything. Recent events have delayed that event, but do not yet appear to have killed its prospects.