Commodities: Don't Let the Rally Fool You

As geopolitical tensions have heated up, so have the commodities markets. The prospect of a widening Syrian conflict temporarily sent crude oil futures above $110 a barrel for the first time since May 2011 and has played a role in the latest stages of the gold marketâ??s push back into bullish territory. (The renewed interest in gold has also been driven by the prospect of the Fed beginning to pull back on the monetary policy that has kept interest rates so low for so long.) The precious metal has conducted a stealth rally since hitting lows in June and now is up more than 20 percent from its June low of $1,180.20 and is trading (in the spot market) above $1,400 an ounce in recent days.