Commodities dropped to an eight-month low as signs of abundant supplies and slowing economic growth curbed demand for raw materials.
The Bloomberg Commodity Index of 22 raw materials fell 0.3 percent by 3:24 p.m. in London after earlier declining 0.4 percent to 122.9665, the lowest since Jan. 10. The gauge declined 2.1 percent this year. Brent oil traded below $100 a barrel for a third day.
Commodities are heading for a fourth annual decline as rallying stock markets and a strengthening dollar curbed demand for an alternative investment. Oil prices are set to drop next year as U.S. crude output reaches a 45-year high, the Energy Information Administration said yesterday. The U.S. corn crop is a record high, the U.S. Department of Agriculture forecast.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.