Commodities Surged but Oil Showed Signs of Fatigue

Weekly Fundamental Outlook for Energies and Metals

21 November 2009 @ 01:41 pm EDT

Commodity prices advanced across the board with Reuters/Jefferies CRB Index gained +2% last week. However, while precious metals and certain base metals continued to show strong upward momentum, rallies in other commodities began to lose steam. We believe it's because investors' risk appetite is declining as recent macroeconomic data displayed a mixed picture on global economic conditions. In fact, the VIX, an index measuring the stock market's degree of fear, fell for the third consecutive week, by -5%, to 22.19 last week, indicating investors have become risk- averse.

Oil and Gold Reports contributed by Oil N' Gold

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