Lead by oil and metals, especially copper, the downward march of commodity prices continues apace. Oil fell under $US44 a barrel yesterday; it's more than $US103 down from the July peak of $US147.47 a barrel. Oil is at a three and a half year low.
Oil will dominate interest this week in commodity markets, even after OPEC members delayed a decision on whether to cut production again this year. That's because the delay is only until December 17 and the next full meeting of OPEC.
Gold rose back above $US800 an ounce on Friday and ended the week 8% percent higher, as investors rediscovered the metal after a month of ignoring its supposed virtue of being a safe haven in tough times.
Dollar demand for gold reached an all-time quarterly record of US$32bn in the third quarter of 2008 as investors around the world sought refuge from the global financial meltdown, and jewelry buyers returned to the market on lower price points according to Gold Demand Trends released today by World Gold Council (WGC). This figure was 45 percent higher than the previous record in Q2 2008. Tonnage demand was also 18 percent higher than a year earlier.