| As is the case across all asset classes, sentiment in the commodity markets hinges upon the belief, or lack thereof, in the ability of politicians and policy makers to find a solution to the European debt crisis. With no sign of a meaningful, long-term cure for Europe’s ills on the cards, cyclical commodities, like industrial metals and energy, suffered a broad downturn over the last quarter, while safe haven flows have driven a bullish trend in precious metals.
As the denominating currency of commodities, dollar strength has taken the edge off commodity gains. With the Swiss National Bank defending its currency and the constant threat of a major yen intervention by the Bank of Japan, haven flows into the dollar should drive its bullish run through 2012...............................................Full Article: Source
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