Commodities are still looking for their identities in 2013

Commodities are still looking for their identities in 2013. It’s been quite choppy trading so far this year with light volumes. The relief rally over the short term fix of the US fiscal resolution faded as prospects of debt ceiling and sequester debates in the coming months kept a lot of traders and investors on the sidelines. The Fed minutes from the last meeting pointed to rumblings about the QE infinity from some non-voting members; suggesting that QE should end in late 2013. These comments caused a selloff in commodities and will likely cap any upward momentum in precious metals until the next Fed Meeting at the end of the month. Gold and silver are locked in a struggle to hold $1650 and $30 respectively. We expect chopping trading conditions to continue this quarter and look for precious metals to trade higher on US and Global economic recovery later this year.