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The recent turmoil in financial markets has a mixed impact on currencies, but with commodities the picture is quite clear. Precious metals go up while all the rest fall.

The price of the precious yellow metal just doesn’t stop. It breaks record after record and is now only $150 below the round $2000 line.

Support is found at the previous peak of $1814, set just a few days ago. It’s followed by $1725. On the upside, it seems that the sky is the limit, but the round number of $2000 definitely caps its.

Also silver continues rising but at $42, it is still below the peaks seen earlier in the year.  

Gold is the ultimate safe haven when currencies are debased. Silver tends to follow, but it is also strongly influenced by real demand and supply. Demand can weaken when the world is contracting.

On the other side, commodity prices are falling – with fears of a recession, there is less demand for anything – even in hungry China. WTI Crude oil is holding above $80, significantly lower from almost $90 earlier in the week.

It bottomed at $75.62 last week – the lowest level since November. The round number of $80 provides support. Further support is at $78 – a place where the pair stopped a few times last year.

The absence of quantitative easing (or dollar printing) has a lot to do with the fall in oil, other commodities and stock markets.

Many expect Ben Bernanke to begin talking about a third round of QE, dubbed QE3 next week, in the Jackson Hole Symposium. This could boost oil prices but there are doubts if he will act in the current inflationary environment.

Are you trading gold, silver or oil in addition to currencies?

For more on gold, oil and other commodities, see Trading NRG.

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