Despite a falling US dollar, commodity prices have continued to move bearish. A number of analysts had forecast a rising value among commodities such as Crude Oil and Gold as the greenback moved downward, but this has so far not come to fruition.
The shift into riskier assets may also have driven many investors away from physical assets like commodities. This may explain the depressed value of commodities in the short-term, but a sustained downward movement hints at a more fundamental shift tied with supply and demand.
Traders may want to follow more closely what is happening with inventory levels for Crude Oil. A rise in inventories could represent a plummet in global demand, thus driving prices lower. Warmer weather in the Northern Hemisphere may also have pushed the price of heating oil lower. Either way, the falling price of the USD will eventually be priced-in to commodities and traders will want to be on the lookout for that swing in value.