Mercator Minerals Ltd MLKKF

CME Group Metals Commentary

[NobodyKnowsOne]

  

Weekly Metals Commentary - February 23, 2010

Commodities prices may move sideways to lower this week, as prices consolidate after some recent strength. Some commodities, including silver, palladium, cocoa, and coffee, could see strength based on trends within those specific markets. A few others may fall back, in part on profit-taking after recent gains. Investors have continued to improve their opinions about the economic prospects of the world in total, and specific regions such as the United States and India. While problems still fester, especially in the U.S. political realm and in the European government finance arena, investors have grown somewhat more opti-mistic about economic trends overall. This has been re-flected in both a stronger U.S. dollar and stronger com-modities markets. The idea of the dollar and commodities prices rising simultaneously should not be surprising, as it happens often in these markets — despite the views of some casual observers that commodities only trade oppo-site the dollar. This environment should be expected to continue over the next several weeks. This week could see a bit of a pause in the recent recovery of commodity prices, however.