Commodity prices may see a mixed bag this week. Gold and silver have some upward momentum, and could move higher after some rocky price experiences last week.

Petroleum prices meanwhile may well decline over the coming week, as fundamentals take some of the recent pressures off of prices. Overall investors remain committed to commodities. In the past few weeks there have been several news stories involving respected and prominent investors adding to their gold assets.

The flow of funds into gold and other commodities markets from investors meanwhile continues.

With prices showing support some of the shorter term speculative traders that were selling gold, silver, petroleum, and other commodities short over the past three months may be repositioning themselves to take advantage of higher prices: Liquidating any short positions they have and possibly preparing to establish fresh long positions.

This shift in shorter term investor market positions could be sufficient to push precious metals prices higher in the next week or two.

Any such increase in prices then would be expected to stimulate follow-on buying by other short-term investors and by proprietary traders at banks and brokerage companies.

Post your comment  (0)

Connect:

Post to Twitter

Post to Facebook