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The PRICE Futures Group Senior Market Analyst Phil Flynn on how the election affected commodities from gold to oil.
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Oddities tanked today following the election results Phil Flynn is a senior market analyst at the price futures group he joins us now I don't -- -- bury the lead -- because these commodity dropped repressive.
But why didn't gold take off.
We know that one of the main factors one of the main factors of -- of a second term is going to be continuation.
A fed policies that really diminish the value of the dollar and raise the dollar value of gold why didn't it pop Warner did.
Well I think because of the concerns over Europe today what we have found of course who were concerned about Europe it's always bearish for gold why is -- because of the eurozone falls apart guess what the only thing that a lot of these countries still have a value.
Is gold.
And that we have even seen as a possibility of the way out of this mass there's even been talk in the Wall Street Journal and the possibility of gold backed Euro bonds.
As a solution to try to get some credibility behind Europe which right now doesn't have a heck -- a lot of credibility and of course the EU president to take didn't help that Mario Draghi -- -- comments today.
OK so what let's look overall of what's been happening -- oil today also -- you can't discount.
A stronger dollar mean when you see that the Euro went to a dollar 27 have been a dollar 3031 over the past couple weeks.
How much does that play into it and also those inventory numbers that we got a much bigger than expected build in crude.
I mean that's what we're talking about demand destruction we have seen demand destruction on a historic scale in the northeast unlike anything we've ever seen.
Bigger -- Corina.
Media on a par with September 11 we're not just talking about gasoline the -- European front we're talking about 20000 canceled flights.
That's incredible demand if you look at the inventory numbers today.
-- and -- for diesel and jet fuel was down fifteen.
Per cent over a year ago levels those numbers may get worse with this nor'easter coming if you look at gasoline demand we -- 8% drop.
That's a lot of barrels of the oil and gasoline -- are sitting in a tank.
Waiting to be burned in its very negative but I say something else we're also price in an economic pain get used to it.
More years of Obama means.
More concerns about the economy higher taxes higher taxes on energy companies less production.
You know and right now the market to see and that's a negative for the economy always negative -- oil prices if you're worried about going into a recession either way we didn't talk about coal prices either we don't have time -- but down 30% -- you're -- down 30% of Nicole.
Call sucks getting hit you when -- -- her coming back expelled thanks.
