Oil, Gold, Silver, Platinum and Copper Hit Record Highs

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Commodity boom, super-cycle, call it what you want. The fact is that the slowing U.S. economy may for the first time fail to slow the pace of commodity prices thanks to strong demand from the rest of the world.

If you're wondering when the current super-cycle for commodities will slow, one place you might want to look is to OPEC. The 13-nation group accounts for roughly two-thirds of the world's oil reserves, and somewhere around 40% of global production. Ahead of its official meeting on Wednesday, OPEC ministers dismissed any possibility of hiking output, despite calls that elevated prices could exacerbate a slowing economy, particularly in the United States.

OPEC's apparent willingness to see prices sustained above $90 is due in part, to the continued weakness of the U.S. dollar. After all, OPEC crude is priced in greenbacks. So if the U.S. dollar weakens further, as it did on Monday, diving to a new low versus the euro, expect oil prices to remain where they are or climb even higher above the most recent record of $103.95 in New York.

...As for the other commodity everyone is talking about, and have been for some time since prices surged almost 32% in 2007 and have risen more than 15% this year, gold jumped $9.20 to $984.20 in New York on Monday, making all those nutty gold bugs look pretty wise...

Commodity boom, super-cycle, call it what you want. The fact is that the slowing U.S. economy may for the first time fail to slow the pace of commodity prices thanks to strong demand from the rest of the world.

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