Dollar up, commodities down (and vice-versa)

04/19/2011 6:05 pm EST


Jim Jubak

Founder and Editor,

Just a reminder: When the dollar climbs, commodity prices fall. And when the dollar falls, commodity prices climb.

For example, yesterday (April 18) when the dollar was climbing against the euro earlier in the morning, oil, gold, and silver were all down. At 10:36 in New York when the dollar had erased its early losses, oil had dropped to $106.74 a barrel, gold was selling for $1484.70 an ounce, and silver traded at $42.26 an ounce.

At 11:22 in New York, by which time the dollar was sliding again, oil had moved back up to $107.08 a barrel, gold had rallied to $1495 an ounce, and silver was trading at $42.82.

I think this pattern will dominate the stock market for a while.


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