Low interest rates are drawing money into oil, gold and copper
Last week, a report out of London warned that low interest rates are drawing money into oil, gold, copper and the exchange-traded funds that are tied to them. As a consequence, we could be faced with yet another bubble set to burst just as soon as the central banks start jacking up their rates.
Trouble for commodities is trigger-happy investors who pile into the U.S. dollar at the slightest hint of fear, as we saw recently with concerns over debt-ridden Greece, Spain and Portugal and a possible bond default by Athens. A rising USD precipitated a fall-off in oil, copper and gold prices.
