Good News for Gold Prices: Commodities are Wounded, But Far From Dead

Greece is frozen in a political stalemate. Youth unemployment is running at over 50%. And there has been a $1 billion run on Greek banks. From near and afar, there appears to be no easy way out, especially now that the Eurozone is heading back into a recession. It's times like these when investors pour into the U.S. dollar for its "perceived safety." With commodities priced in U.S. dollars, this spike in the greenback has sent commodities-including gold prices-into a tailspin since early March. That has many doubters asking: "Has the commodities super-cycle ended?" It's a reasonable question considering the Continuous Commodity Index (CCI) is back down to levels it last saw in September 2010. What's more, gold prices have backed off to near $1,500/oz., and oil prices have fallen from $110 to $90/barrel. But as you'll see, the commodities coin does have another side.