Fed Must Address Commodities' Relevance To Inflation (ETFs: DBC, GLD, SLV, USO, XLE)

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Includes: DBC, GLD, SLV, USO, XLE
by: David Fry

Commodity price increases are now making headlines led by metals and energy. The Fed and other pundits, long in denial about their relevance to real inflation, will have to confront and address this reality.

It wasn’t just gold that was setting new highs [see chart below, streetTracks Gold Trust (NYSE: GLD)] ; copper, platinum and silver all set new highs for this move. Many analysts were attributing the rise in silver to the impending silver ETF (NYSEARCA:SLV). When is it coming? I don’t know that yet.

United States Oil Fund LP (NYSEARCA:USO) made new highs yesterday rising 1.41% while XLE also had a good day rising 1.85% as they both follow crude oil prices higher. It seems to me that should the overall stock market decline and crude oil prices rise or remain firm, Energy SPDR (NYSEARCA:XLE) would under-perform USO.

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