Monday, January 5, 2009

Gold sells off on commodity rebalancing

Did anyone catch Rick Santelli laughing on CNBC this morning when he was talking about gold buyers? Gold got hit today, but there was a reason behind it. Commodity index re-balancing.

Click on the above picture and it will tell you the story, or you can get it straight from JP Morgan:

"In financial terms, we expect the rebalancing to have the greatest impact in gold, COMEX copper, crude oil, gold, and live cattle. We estimate that the rebalancing of the two indices is expected to result in $877 million of selling in gold, $699 million of buying in COMEX copper, $528 million of selling in live cattle, and $523 million of buying in crude oil."

JP Morgan see the most significant change coming in the DJ-AIGCI rebalance. Here the market weight of crude oil is expected to increase from 9.6 per cent to 13.8 per cent, gold from 10.8 per cent to 7.9 per cent, copper (COMEX) from 4.5 per cent to 7.3 per cent, live cattle from 6.4 per cent to 4.3 per cent and sugar from 4.7 per cent to 3.0 per cent. Meanwhile, S&P GSCI crude oil weight will go from 32 per cent to 33.8 per cent.

15 comments:

stock tips said...

I positively venerate celebration of a mass your blog posts, a accumulation of essay is smashing.This blog as common was educational, we

have had to bookmark your site as well as allow to your feed in feed. Your thesis looks lovely.Thanks for sharing.
Regards
stock tips

Trade4Target said...

I absolutely adore reading your blog posts, the variety of writing is smashing.This blog as usual was educational, I have had to bookmark your site and subscribe to your feed in i feed. Your theme looks lovely.Thanks for sharing.
trade4target

Commodity Market said...

very good post, i was really searching for this topic as i wanted this topic to understand completely and it is also very rare in internet that is why it was very difficult to understand

thank you for sharing this.
Regard
Commodity Market

Share Market said...

very good post, i was really searching for this topic as i wanted this topic to understand completely and it is also very rare in internet that is why it was very difficult to understand. thank you for sharing this.

Regard

Share Market

share tips said...

I read your post . it was amazing.Your thought process is wonderful.The way you tell about things is awesome. They are inspiring and helpful.Thanks for sharing your information and views.
share tips

trade4target said...

I really appreciate your post and you explain each and every point very well.Thanks for sharing this information.And I’ll love to read your next post too.
Regards
trade4target

MCX Tips said...

I absolutely adore reading your blog posts, the variety of writing is smashing.This blog as usual was educational, I have to bookmark your site and subscribe to your feed in i feed . Your theme looks lovely.
Thanks for sharing.
with regards:
MCX Tips

Gold Silver Tips said...

I really appreciate your post and you explain each and every point very well.Thanks for sharing this information.And I’ll love to read your next post too.
Regards
Gold Silver Tips

intraday tips said...

I really appreciate your post. It gives an outstanding idea that is very helpful for all

the people on the web. Thanks for sharing this information and I'll love to read your next

post too.
Regards: intraday tips

stock market tips said...

Very efficiently written post. It will be valuable to everyone who uses it, as well as myself. Keep doing what you are doing – looking forward to more posts.

stock market tips

share market tips said...

I absolutely adore reading your blog posts, the variety of writing is smashing.

This blog as usual was educational, I have had to bookmark your site and subscribe to your feed in i feed.

Your theme looks lovely.Thanks for sharing.

Share Market Tips

Gold Silver Tips said...

I really appreciate your post and you explain each and every point very well.Thanks for sharing this information.And I’ll love to read your next post too.

Regards

Gold Silver Tips

mcx tips said...

Great informational article. I learned quite a bit . I will be using the things I learned from your article.
Thank You
mcx tips

Profit said...

I have the many of the same thoughts contained in this article. It's good to know I'm not the only person who has these views. You have written an excellent quality informational article. Thank you.

Unknown said...

Really nice information.keep blogging. commodity Tips