Commodity prices fall as dollar rises and investors sell off some of their goods for a profit. The US dollar bounced back in unstable forex market on Thursday as investors become vigilant ahead of G20 finance ministers meeting on Friday and Saturday.
Market analysts forecast a stronger dollar if the G20 finance minister meeting developed a consensus not to devalue their currencies. A stronger dollar turns buyers using foreign currency away from commodities since they are priced in dollars.
Investors are watchful while they wait for Federal Reserve decision next month as how to fuel the economy. Majority of investors are expecting Policy makers to start buying bonds in November that will exert more pressure on the US dollars.
Metals, grains, energy contracts all dropped on Thursday. Gold shed US$18.60 settling at US$1,325.60 an ounce.
In contracts for December, Crude lost US$1.98 to US$80.56 a barrel, Silver dropped 72.5 cents to US$23.139 an ounce, copper lost 1.2 cents to settle at US$3.7815 a pound, and palladium shed US$4.35 to US$586.30 an ounce, wheat dropped 14.25 cents to US$6.6875 a bushel, and corn fell 9.25 cents to US$5.6425 a bushel.