What happened to those everyday commodity contracts the average investor follows?
I’m talking about crude oil, gold, and copper.
These days, it’s all about cattle futures, orange juice, or cocoa hitting an all-time high.
I’m sure everyone down at the NYMEX or the folks over at the CBOT in Chicago are having a ball. But what about the stock traders trying to get a piece of the action?
Sure, the energy trade is starting to work again. But gold has been a range-bound mess since the summer of 2020. And gold mining stocks have been an absolute dumpster fire.
It just doesn’t make sense amid a commodity bull run…
No, the absence of gold and copper breakouts doesn’t make much sense, and neither does crude oil underperforming gold as interest rates rise:
But black gold’s lack of relative strength speaks more to the range-bound nature of precious metals than crude oil weakness.
In fact, Gold is retesting its 2020 high for the fourth time in just under four years.
Will it finally break out?
I don’t know. But an upside resolution in gold futures will likely kick off the next leg higher for the broader commodity space.
