| After a dismal performance last year, commodities have continued to hit the headlines this year for not-so-good reasons. The world’s leading index of commodity prices – Bloomberg Commodity Index – has shed more than 5% in January and is now trading at a 12-year low. Also, the index tracking the prices of 22 different commodities, such as, gold, natural gas and oil has lost more than 20% in the past one year.
A strong dollar, tumbling oil prices, supply glut and weak global fundamentals had already started to play foul on commodity prices since the final quarter of last year. In fact, the latest upbeat view by the U.S. Federal Reserve on the state of the country’s economy has increased the volatility in the commodity space...............................................Full Article: Source
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