Commodity Market Graph

Crisis U.S. Dollar Falls: Gold, Silver And Crude Oil Soar

Commodity Market Graph Dynamic inverse relationship between the depreciating U.S. Dollar and higher commodity prices for crude, gold and silver. In 2010 and currently, the United States Dollar steadily depreciated, especially against the second largest industrial country currency in the world China. In the United States and around the world negative economic and political news influence currency traders, marketing down the value of the U.S. Dollar. The devaluation of the U.S. currency influences commodities, including gold and silver escalating higher: Hedging against inflationary cost of imports especially crude oil. Certainly, geopolitical news around the world especially in the Middle East, and supply & demand (Global economic growth around the world, expected to increase the demand for crude oil consumption, forecasted in 2011 by the U.S. Energy Department 13) concerns, soar crude oil prices. The momentum price appreciation for commodities hard to derail as inflation takes-off, referred by economist: "Genie is out of the bottle."

The United States Federal Reserve stem the growth of inflation long - term, raising short-term interest rates and pursuing other options. Currently, no signs the majority of Federal Reserve concerned higher commodity prices will slow-down our economy in the long - term (According to Federal Reserve meeting on March 15, 2011 1), considering an interest rate hike. Economists and investors waiting to hear from the Federal Reserve Open Market meeting scheduled for April 26, 2011, signal an interest rate change. However, several interest rate hikes will be necessary, ensure the U.S. Dollar has changed direction absolutely and thus commodities prices, until such time the direction of the U.S. Dollar and commodities prices continue to move steadily down and up.

Reasons why crude oil, gold and silver prices will increase and Devaluation of the U.S. Dollar shall continue:

The United States Congress likely vote to increase the U.S debt ceiling, reaction devalues our currency. The devaluation of the U.S. Dollar cause a chain reaction: Escalating higher imported crude oil prices and commodity prices. The outcome is forecasted by Keith McCullough Hedgeye CEO and Consumer News and Business Channel (CNBC) contributor, predicts future price of crude oil at $150 a barrel. 2 The world's leading economic countries including China and United States, experiencing economic recoveries from the recent recession, increases consumption of crude oil. However, crude oil supplies are limited (Saud Arabia's oil minister reported on April 24, 2011 the kingdom has reduced output by 800, 000 barrels per day in March 2011. 10) and tensions in the Middle East or rumors of supply constraints, pressure the price of crude oil higher. 9

Saudi's move keep crude oil prices high by cutting production help their budget concerns. "The kingdom promised nearly $93 billion in handouts to its citizens in the wake of the wave of unrest that swept the Arab world this spring, making a sharp fall in oil prices a major risk for its budget." 10 Unfortunately, the Saudi's move to cut production, couldn't come at a worst time, as the U.S. Dollar is devalued: Costing more to import and increased consumption in the United States, from an improved economy.

By travels - Analyzing & investing in the financial markets over 20 years. Worked freelance in Wall Street Firms. Part time - Market website for those seeking to find an apartment to rent in NYC & New Jersey. Also part t...

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Commodity Market Graph

Crisis U.S. Dollar Falls: Gold, Silver And Crude Oil Soar

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