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Commodity Daily News
Look to the USD Index
Friday, 16 Dec 2011
Commodity prices all took a plunge on Wednesday with crude oil down 5% and gold plummeting almost $100. A tepid rebound was seen on Thursday but the retracements pale in comparison to the price declines.
There have been multiple theories for the decline in commodity prices floating around on the forex blogs, some ranging from bearish technicals, central bank selling, or a liquidation squeeze. We believe that a strong USD has been weighing on commodity prices. This trend of lower commodity prices could continue given the USD index (DXY) is now trading at its highest level of the year.
