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| Two men enter, one man leaves |
Of all the commodities, it is gold which continues to hang on, averaging in the low 1200-range in recent months and closing tonight at 1222 and change.
It's looking like the last man standing.
S&P GSCI commodities indexes for precious metals, petroleum, agriculture and agriculture/livestock are all down year to date, and down significantly for the 1 year and 3 years. (Petroleum is down a whopping 37.99 year to date). But while the ags are virtually flat per annum over 10 years and petroleum is down 3.87 per annum over 10 years, precious metals alone remains up big over the last decade, 9.82 per annum, buttressed by gold. Pretty impressive.
This is somewhat surprizing given the six month surge in the dollar closing at 88.32 tonight, not far off the 89.55 high of a few days ago. In early May it was as low as 78.90. And 10 years ago, the dollar actually traded below 82 before embarking on an erratic history of ups and downs before stabilizing in the 80s after 2011, the year that gold peaked. But for the 1 year now the dollar is up over 10% while the average gold price to date hasn't retreated as much as 3%.
If a rising dollar is supposed to be killing off gold, we don't see it yet.
