It’s difficult to trade in the commodity markets, as leading assets are on a downward trajectory. Both soft and hard metals are heading south, giving investors the jitters.
Commodities like the US dollar, steel, copper, and oil prices have dipped drastically, leading to massive losses for traders. According to speculation, the negative trend could continue in September as the Feds might not initiate interest rate cuts.
The development leaves the commodity markets without takers, leading to bearish sentiments. Only gold stayed afloat in the markets, trading above the $2,500 level on Wednesday.
Gold’s dips are minimal, while the highs are nearly 23% year-to-date. While gold maintained its surge in the charts, the US dollar, steel, copper, and oil prices began shedding their gains.
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Commodities Going South in September: US Dollar, Steel, Copper, and Oil Prices
The US dollar, Chinese steel, copper, and oil prices are on the receiving end of the spectrum this month. The DXY index, which measures the performance of the US dollar, shows the currency falling to 101.40. The West Texas Intermediate (WTI) crude oil price plummeted to $66.65 during Wednesday’s trade.
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In addition, copper prices have shed nearly 8% in a month and could continue heading south. Chinese steel is down 3.61%, and the main culprits pushing the index down are the falling steel rebar and h-beam steel prices.
The property sector in China is dwindling, with no large demand for new homes. This, in turn, is affecting steel prices as construction has mellowed down.
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The slow demand for steel in China could extend beyond its borders as real estate has become expensive around the world. These weak developments are affecting the US dollar, steel, copper, and oil prices combined.