NEW YORK (Commodity Online): The commodities complex has crashed in the weekend as policy makers run out of options to avert another global recession and US dollar gained strength folliwng the US Fed announcing an Operation Twist. This $400 bn program will sell short-term notes to fund purchase of longer-dated Treasury's.
Investment wizard Jim Rogers pointed out that US dollar is going higher against major currencies but it cannot be called a safe haven. For some reasons, investors are rushing into the dollar.
However, in the present scenario he is upbeat on Swiss francs, US dollars and agriculture, he told CNBC. He expects the cooling of China economy to continue and said that the global economy is worse off than in 2008 as debt has gone through the roof.
Meanwhile, in commodity markets, broad sell-off has resulted in plunging prices of agriculture and metals. The Standard & Poor’s GSCI Index of 24 commodities is down 6.7 percent for this week, the most since May 6. The index was up 0.3 percent at 10:34 a.m. in London.
Silver dropped 6.9 percent today, copper was down 3.3 percent and nickel slumped 3.6 percent. The London Metal Exchange index of six industrial, or base, metals fell yesterday the most since Aug. 31, 2010, Bloomberg reported.
