Commodities dive as dollar corrects losses

Commodities dropped notably on Monday, and the WTI oil was down 1.50%, silver 1.35%, copper was losing 1%, and gold was 0.20% weaker during the London session as the USD managed to book small gains after last week’s massive decline.

Most commodities rose sharply during the last week’s, capitalizing on the USD weakness, so today’s correction could have been anticipated. However, silver and gold are the only major commodities observed in a medium-term bearish trend as they have been drifting lower since their summer highs. 

From other news, the German Ifo institute said its index for production prospects dropped to 5.5 points in November from 16.3 points in October. That undermined the EURUSD pair slightly and confirmed the Eurozone would have another dip in the GDP due to more COVID restrictions.

US stock markets were marginally lower on Monday after reaching new all-time highs on Friday. Since the money printing will continue, all the dips should be aggressively bought by the bulls. 

As there is no other major news on the agenda for the rest of the day, trading should be driven by sentiment and technical factors. 

Source: https://www.axiory.com/market-news/commodities-dive-as-dollar-corrects-losses