Today the commodities markets experienced a correction. Oil fell below just below $70; gold has fallen roughly $30 to nearly $680 per ounce; and silver has fallen just over a dollar to $13.14 bid. Commodities have been on a tear recently, so a correction at some point was expected. I have no idea whether the correction continues tomorrow or during the rest of the week. If it does continue, I will consider increasing my exposure. I do not have a set plan. Rather, I will continue to monitor commodities and will act accordingly.
Today's correction does not in any way alter my longer term bullish outlook. There are bound to be corrections. So far this year, however, commodities have performed extremely well, and I still believe that the global economy will continue to need commodities.
Chanyaporn Chanjaroen wrote a worthwhile Bloomberg article regarding today's action Metal Prices Lead Commodity Declines; Rate Gains to Curb Demand. The article is freely available to all.
Like everyone else, I will just have to stay tuned to see what happens next.
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