North American Commodity Update, Last Updated 7/20/2009 4:05 PM EST (GMT = EDT +5:00) Commodities – Energy Economic Optimism Drives Crude Prices Higher Crude Oil (WTI) $64.350 +$0.790 +1.24% Crude Oil future prices picked up right where they left off last week, adding nearly another 1% during today’s trading session. Last week, Crude was driven by encouraging corporate earnings releases, better-than-expected employment figures and various other economic indicators all pointing to an economic turnaround. There were numerous reasons for Crude’s gain today, beginning with the US Leading Indicator, which increased by 0.7%, surpassing the 0.5% expectation. The indicator improved for the 3rd straight month, the first time we have seen such a streak since 2004. Increased economic optimism led to a speculation that demand for the commodity will soon increase, driving future prices higher. In related equity news, CIT Group announced a private-sector bailout today after the US Government refused to grant the struggling lender any more funding. The government’s refusal to issue more bailout funds revealed its newfound faith in the stability of the economy, contributing to additional commodity gains. European Equity Indices all closed higher during today’s trading, propping up the price of Crude near the $65-per-barrel level. Slight resistance exists just above $65, so Crude may struggle before eventually breaking this important price barrier. Commodities – Metals Precious Metals Achieve Gains on Weaker Greenback Gold $949.700 +$12.200 +1.30% Gold prices tapped a 5-week high at just under $955-per-ounce during today’s trading before falling back slightly to the psychological $950 level. Gold’s dramatic increase of late can be easily explained; the US dollar fell across the board today against its major competitors, falling to a 6-week low. Gold and the greenback often trade inversely as investors use the metal to hedge against dollar weakness/inflation. As investors prepare for an economic recovery, inflationary concerns set in and, in turn, bid up Gold future prices. Inflationary fears were so overwhelming that even an alarming German PPI report signaling deflation could not mute the metal’s gains today. Gold prices have struggled to remain above $950-per-barrel today, which may signal that investors are not ready to break the resistance quite yet. Expect prices to oscillate around this level in the short-run, though a breakthrough may be on the horizon. Silver $13.635 +$0.232 +1.73% Silver future prices continued to increase during today’s trading, bouncing off a recent low near $12.50 just two weeks ago. As was the case with Gold futures, Silver benefitted from dollar weakness as investors bought the metal to defend against inflation. The prospect of an economic recovery also drove Silver prices higher; the market continues to price in last week’s encouraging corporate earnings reports and positive leading indicators. The Bank of Canad’s Interest Rate Decision and various price index reports will be released; these announcements will move the commodity market as we learn more about global economic confidence and inflation. -Written by Jay Steinberg, CFDTrading Research Questions/Comments about this article? Send them to JSteinberg@fxcm.com

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