During last week’s tumbling of most commodities, including gold, silver, and base metals, my portfolio, with a focus on metals and commodities, dropped 10.87%. Gold price was at a 6-week low of $1360 but was able to defended its 200-day moving average and bounce back Friday afternoon on poor U.S. job data #CNBC. Neither did agri-commodities escaped the quick onslaught. In US Futures market, soybean, corn, and pepper futures all fell on a weaker export demand #CommodityOnine.
Did any commodity gained during last week’s tumbling? Speculation that sugar demand will bounce back after sugar prices bottomed drove sugar to its biggest gain in a week. In addition, coffee and cocoa futures rose #CommodityOnline.
Watch the dollar. Get the dollar right, you get gold right. A negative correlation exists. In the future, if any currency were to replace the dollar, the same negative correlation is expected to exists. But I believe that the dollar is too big to fail.
Bottom line: stocks tend to run in groups.