A Weak Dollar Is A Good Thing For Commodities

Today was a weak day for the U.S. Dollar. A weak dollar is usually supportive of commodity prices and commodity stocks.. Above we have a chart of the $CRX index which represents various commodity related stocks. In the lower panel is a chart of the U.S.Dollar. Notice the inverse relationship between the two charts. As you can see the Dollar is at the lowest level in 6 months.. If this level is broken and the dollar continues to break down, commodities should move higher. I posted a comment just yesterday on why I am bullish on Gold..The reasons were all technical but now we have a fundamental catalyst as well (a weak dollar)... Some of the other foreign currencies have already broken out to the upside like the Euro and the British Pound which makes me think the Dollar will break through this 6 month low..
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