News and Chart for Wednesday

Here is some news I’m reading today …

•1)      CFTC: Speculators caused 2008 oil price crisis

In a major U-turn from its claims during the Bush administration, the Commodity Futures Trading Commission is now set to admit that speculation in oil markets - and not the forces of supply and demand - are behind last year’s massive oil price spike.

In the summer of 2008, oil prices on the open market reached an unprecedented $147 per barrel. Many economists argue the spike helped push the US into an economic free-fall last autumn.

•2)      A humor columnist gives us a hilarious take on Goldman Sachs’ view of the world.

 •3)      Gold Retreats to More Than One-Week Low in London on Dollar’s Strength Gold fell to the lowest in more than a week in London as a strengthening dollar dimmed the metal’s appeal as an alternative investment.

XX Sean’s note:  The US dollar bounced yesterday, and that caused a lot of dollar shorts and gold longs to cover.  But the dollar isn’t out of the woods yet.  Take a look at this chart …

1. A Surge of Bullish News for Commodities I love that Australia’s environmental minister is the former lead...
2. Chart Showing How Relationship Between Gold and Greenback Changed We know that the relationship between gold and the dollar...
3. News You Can Use for Wednesday Goldman’s Cohen Says U.S. Financial Markets Moving `Back Towards Normal’...
4. Gold Chart and China News China’s Economic Growth Quickens to 7.9% on Record Loan...
5. Sliding Into the Weekend The dollar doesn’t know what it wants to do this...