Commodity Prices Rally Likely In 2H2009

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The rally in commodity prices has continued, driven by a bottoming of global growth expectations, a weaker dollar and a consequent improvement in investor sentiment. Specifically for commodity markets, China's imports of key industrial metals, crude oil, coal and even soyabean have added extra momentum to the markets concerned, although end use demand remains weak.

Substantial supply cuts have now been implemented, which together with less negative news from the US and some positive news from China, have been enough to underpin a broad-based rally in commodity prices.

In addition, gold continues to grind higher on sustained investor demand and USD weakness. China's reported increase in gold reserves will reinforced gold outlook to break USD 1,000 per ounce again in 4Q.

Fundamental of US economic is still weak but Asia economic is strong, Due to this fact investor choice to see the good news from China and just close the bad news from US will make the share market and commodity market rally higher by year end.

For now just need a good entry point to reinvest into share market.

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My investment with RM5,000 initial capital have been growing since 2005.I found the stock market appears confusing and complicated, but it is most definitely based on logic "supply and demand". However, the laws of supply and demand as observed in the markets do not behave as one would expect. To be an effective trader, there is a great need to understand how supply and demand can be interpreted under different market conditions and how to take advantage of this Off Market Transactions in KLSE.

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