If it digs, buy it (again)!

Big iron is back as the US dollar is panned and, well, just because:

BHP is up 4.3%, RIO 3.5% and FMG 5.7% as Dalian also adds 1%. This has nowhere to go on iron ore fundamentals but that never stopped a salivating stampede.

Big gas is also up though modestly as WPL adds 0.6%, OSH -0.5%, ORG 2.3% and STO 0.5%:

Today’s star performer is gold with just about every miner up 10%+. Here’s the monthly chart:

The banks are mixed with CBA 1%, WBC 1.3%, NAB 0.8%, ANZ -0.3%, BOQ -04%, SUN -2.2%, BEN 0.5% and MQG -1.4%:

With US rate hikes dusted, financialised commodities (or miners) could run for a bit, and with RBA rate cuts even more likely so could the banks. ASX purple patch?

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.