For the year, commodities, as measured by the Bloomberg Commodity Index, a gauge of price performance on 22 commodities, are down 12.1%, currently at 77.30. Meanwhile, the dollar index is up 5% on the year, a key driver that has helped to weigh on commodities overall. However, perhaps the more significant factor in driving the weakness observed in commodities this year is the aforementioned fall-off in oil prices, which have dived by some 41% over the past three months.
Going forward, one big catalyst that will determine the demand and flow of some commodities is the ongoing U.S.-China trade war.
In recent action, commodities moved a bit higher in early trade today but have since shown a notable reversal and just hit a new low for the day.
The Bloomberg Commodity Index is now down 1% at 76.83. The dollar index is 0.2% lower at 96.2480.
Looking at energy, December WTI crude oil futures slid lower this morning and fell as low as $44.76/barrel. They are now down $0.31 at $45.02/barrel.
In other energy, December natural gas continues its sharp reversal, down $0.22 (or -6.6%) today at $3.09/MMBtu.
Moving on to metals, December gold is currently -$0.70 at $1282.30/oz while December silver is +$0.03 at $15.46/oz. In base metals, December copper is now -$0.035 at $2.65/lb.