Will the metals be recognized as a good alternative investment?
*Bloomberg, by Mark Shenk, June 9, 2009
“Crude oil rose for the first time in three days as the dollar fell against the euro, bolstering the appeal of energy and metals as an alternative investment.
Oil advanced more than 2 percent as the U.S. currency slumped. The U.S. Energy Department will probably report tomorrow that refiners boosted operating rates to meet summer gasoline demand, according to a Bloomberg News survey.
‘This is a financial-driven market not a fundamental- driven market,’ said Michael Lynch, president of Strategic Energy & Economic Research, in Winchester, Massachusetts. ‘It’s hard to see a lot of rational reasons for this rally. The flow of investors, not consumers, that’s what’s supporting the oil and commodity markets.’
Crude oil for July delivery gained $1.24, or 1.8 percent, to $69.33 a barrel at 12:12 p.m. on the New York Mercantile Exchange. Futures advanced as much as $1.73, or 2.5 percent, earlier today. Prices have risen 55 percent this year and touched a seven-month high of $70.32 on June 5.
The dollar fell in the past three months against all of the 16 most-traded currencies tracked by Bloomberg except the yen on speculation the Fed’s purchase of up to $300 billion in Treasuries to support the economy will undermine the U.S. currency.”
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