In retrospect, the sharp slide in physical commodity prices was well deserved, what with global macroeconomic sentiment eroding in the wake of signs of lost momentum in the US recovery, threats of additional sanctions against Russia, and perhaps most importantly, a soaring US Dollar.
Russia
Disconcerting Outlook for the Third Quarter
The tone of the global economy has deteriorated over the last month, and it has become apparent that portions of the Euro zone were much softer than expected during the second quarter.
Long, Slow Global Economic Recovery
The US recovery looks destined to sneak up on the markets, particularly with the Treasury market.
Trend in Chinese Economy Impacting Physical Commodity Markets
The track of the US economy is important, but seeing a trend of better economic news from China is probably more important to physical commodity markets.
Soaring Treasuries Suggesting US Recovery is Not Sustainable
Chinese Commodity Price Trends; Overblown Concerns
Make no mistake: The ebb and flow of Chinese physical commodity demand remain paramount to commodity price trends! Clearly Chinese growth has slowed, and clearly there has been an added fear of credit turmoil inside of China with their recent bond failure.
Gold futures impacted by Russia-Ukraine tensions
Tensions between Russia and Ukraine prompted increased demand for storage havens on Tuesday as gold futures rose in value and barreled toward the threshold price of $1,400 per troy ounce, according to Bloomberg.