Commodities rise as Bernanke delivers hoped-for news: Interest rates will remain low
By APWednesday, February 24, 2010
Dollar’s latest fall lifts boost commodity prices
HOW DID BERNANKE CHEER THE MARKET: Bernanke’s statement that rates would remain low is a “sell” sign for the dollar. And a lower dollar makes it cheaper for foreign investors to buy commodities.
HOW UPBEAT ARE INVESTORS ABOUT COMMODITIES: Upbeat enough that they overlooked news that oil inventories are up. Such news typically sends oil falling, but it rose more than $1 to close at $80.
WHICH COMMODITIES LAGGED: Gold fell as investors interpreted Bernanke’s remarks to mean that inflation will remain low. Gold looks more attractive when inflation appears to be a threat.
YOUR VIEW POINT
