Commodities: The bull that just won't die

(CNNMoney) -- Gold, oil and other commodities enjoyed a stellar run in 2010. The party may not be over just yet ... but investors have to be wary.

Several experts say that the main forces behind the bull run in commodities last year, namely strong economies in emerging markets coupled with worries about the health of the U.S. and Europe, are likely to remain in place this year.

Concerns about the sovereign debt crisis in Europe and the slow grind of a recovery in the U.S. could weaken both the euro and the dollar. A stagnant greenback in particular should bolster commodity prices since many commodities are priced in dollars.

David Beahm, vice president of economic research Blanchard & Company Inc, a New Orleans-based investing firm that specializes in tangible assets like gold and other precious metals, says gold could hit $1,650 an ounce in 2011. That's about 15% higher than current levels, which are already flirting with record highs (not adjusted for inflation.)

Beahm said that the Federal Reserve's quantitative easing program should lead to more weakness for the dollar as the central bank continues to purchase long-term bonds. He added that the Fed may need to do even more to jumpstart the economy, especially if the unemployment rate remains high. (more)