Commodities Price Update-Declining Trend in Prices Continues.WTI at USD $ 94.63

All commodities registered declines during today’s morning trading. WTI crude future dropped by 5.2 percent to USD $ 94.63 a barrel. Brent crude future dropped by 5.1 percent to USD $ 105.15 a barrel. Silver future fell by 3.99 percent to USD $ 34.795 an ounce, while Gold future regained its value by 0.41 percent to be at USD $ 1487.40 an ounce.

The decline in the price of commodities was brought about by panic trading. It can also be termed as a liquidation move by investors in an already crowded commodities market. The recent string of weak macroeconomic news, such as the Euro depreciating against the US Dollar, lower than anticipated number of new jobs added to the US economy, increasing crude oil stockpiles in the US etc have led to a lot of volatility in the commodities market. In such an environment, liquidation has been encouraged, with investors trying to sell off before the prices fall even further. At the moment, it is uncertain whether this is just a short-term trend or is expected to continue for a longer duration. However, the basic fundamentals for owning commodities are still pretty much strong.