Weaker Dollar Is Lifting Commodities Higher
The U.S. Dollar Index is still the driving force behind every commodity move. This morning, the U.S. Dollar Index futures (DX H2) are trading lower by 0.53 cents to $79.69 per contract. When the U.S. Dollar Index declines it will usually mean that most every commodity will trade higher. That is certainly the case this morning as oil, copper, soybeans, wheat, rice, gold, and silver are all on the rise.
Traders can easily see the price of the iPath Dow Jones-UBS Copper Subindex Total return ETN (NYSE:JJC), SPDR Gold Shares (NYSE:GLD), and United States Oil Fund (NYSE:USO ) are all trading higher this morning. Pullbacks for these commodities are likely to occur if the U.S. Dollar Index can strengthen or bounce during the trading day. The JJC will have intra-day resistance around the $49.25, and $49.75 levels.