From Oil To Gold, It's Down

A volatile and still-shrinking Asian market is responsible

The commodity markets are swooning again, and the culprit is Asia. Following riots in Indonesia and nuclear tests in India, prices of oil, metals, and even grains have been whacked. In the last month the Goldman Sachs Commodity Index has dropped 10% and now stands 25% below where it was a year ago. Spot prices for commodities in the index are now flirting with 10-year lows. "I'm not particularly enthusiastic about any commodity now," says William E. Byers, director of futures research at Bear Stearns.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.