Commodities Slump on USD's Rally. FOMC Minutes Said Better Outlook Not Sufficient to Adjust QE2

5 January 2011 5 January 2011

BonTrade

Commodity markets slumped as USD rebounded after the December FOMC minutes showed a positive tone from policymakers. Gold price tumbled with the benchmark Comex contract plummeted to a 1-week low of 1375 before closing at 1378.8, down -3.1%. In the energy complex, the front-month contract for WTI crude oil declined to as low as 88.36 before finishing the day at 89.38, down -2.37%. Stock-builds in gasoline and distillate weighed further on sentiment.