| As the US debt crisis deepens the natural inclination is to view commodities as safe havens. The logic is simple. A default in the US should in theory put pressure on the dollar and with metals priced in the greenback the prices of commodities should rise in dollar terms.
Recent market reaction seems to indicate that investors see commodities as potential safe havens. Since the US was placed on watch for a possible downgrade by S&P on 14 July the prices of commodities have ticked higher..............................................Full Article: Source |