Commodities: Oil, Gold, Grains, Softs All UP sharply today

Commodity prices continue to surge higher almost across the board today. Gold, which prices have been somewhat subdued the past few weeks, are showing heavy buying activity on the daily chart (see the blue circle, bottom right section of the chart). Prices have yet to surge explosively higher, but the buying volume indicates that prices are likely to follow soon if the buying volume continues.

Klinger Volume indicator

The Klinger+ATR volume indicator is a leading indicator, so when buying volume picks up, as shown above by the green rising line in the subgraph inside the blue circle, prices are likely to soon follow. The indicator has even crossed powerfully above its yellow moving average line. Look at the times when the line turned green/up or red/down in the past on this chart. Note also that the trend changes in this indicator usually occur shortly before prices turn up or down (hence, it is a leading indicator). It suggests that gold is currently being bought in record volume, and that prices are likely to soon rise as well.

Broad Commodities Indexes

I have also posted here the chart for the ETF symbol "DBC", which is the Powershares Liquid Commodity Index. Note the surge in price activity resulting from further promises of Fed rate cuts. Likewise, I have posted the chart for the GSCI (Goldman Sachs Commodity Index) March 08 futures contract, which is showing similar price strength. The charts for these two instruments represent broad commodity prices, so they should appear very similar.