Bloomberg reports this morning that:

•    crude oil rose above $40 a barrel on speculation a U.S. stimulus plan will revive demand in the world’s largest energy consumer as (an analyst quote) “The market is becoming more confident that the infrastructure packages, which are probably going to be approved this week, will have some effect” – to read click here;

•    “gold fell the most in a week on expectations the U.S. Congress will pass a smaller-than-expected stimulus package to revive the economy, easing the risk of accelerating inflation. Silver also declined” – to read click here; and,

•    copper rose in London on speculation economic growth in China will spur demand for metals, and zinc $5 to $1,190 a ton. The report then says that “Both metals pared advances after the U.S. financial recovery plan was delayed, potentially extending a U.S. recession that has reduced demand for industrial metals”. A Goldman Sachs analyst is reported to have said that he believes (paraphrased) “Zinc will be higher in 12 months at $1,235 a ton as demand holds up better than other industrial metals “given its high infrastructure-related usage, and copper will be lower at $3,200 a ton” – to read click here.

While I find these numbers interesting and monitor them daily, because I am not a day trader I am far more interested in what I think are likely to be the near and long-term trend prices.  I find some of the explanations given for intra-day and daily oil and metal price changes shallow, and frankly pay little attention to them.  However, if I were a day trader I would pay far closer attention to daily commodity pricing than I do.

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