Commodity Stocks Surge As the Dollar Hits 4 Month Lows
This morning the U.S. Dollar Index is is trading lower by 0.79 cents to $79.65. This decline in the U.S. Dollar Index brings the dollar to a fresh new four month low. As we all know by now when the dollar declines the stock market indexes will inflate and trade higher. Most effected by the move in the U.S. Dollar Index will be commodities since they are all traded in dollars. Today most leading commodity stocks such as Cliffs Natural Resources Inc.(NYSE:CLF), Freeport McMoRan Copper & Gold Inc.(NYSE:FCX), and Southern Copper Corp.(NYSE:SCCO) are all trading sharply higher.
Spot oil and gold are both higher as well on the back of the declining U.S. Dollar Index. Gold is surging to a new all time high at $1295.00 an ounce. Should the U.S. Dollar Index find a support area and stage a bounce this could stall out the move in the commodity names and put pressure on the stock markets.