| Commodities fell, heading for the biggest two-day selloff since November, as speculation over rising U.S. interest rates fueled a rally in the dollar. The Bloomberg Commodity Index slid 1.9 percent as of 1:20 p.m. in New York, led by losses in wheat, natural gas and crude oil. The U.S. currency strengthened versus all 16 of its major peers.
Goldman Sachs Group Inc. said on Monday that a rising U.S. dollar, cheaper oil and weaker Chinese growth will drive raw materials to reverse gains that started in March. “An increase in the dollar’s value is typically associated with lower commodity prices,” Paul Christopher, the St. Louis-based co-head of real-asset strategy for the Wells Fargo Investment Institute, which oversees $1.6 trillion, said by phone. “We will see some periods of volatility.”........................................Full Article: Source
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