Commodities headed for the longest decline this year as faltering economic conditions heightened speculation that demand will decline for raw materials from crude oil to cotton.
The S&P GSCI spot index of 24 commodities fell for a sixth day, the longest drop since late December. Gold slid for a third session as gains in the dollar eroded demand for precious metals as a hedge against inflation, while crude oil, nickel and platinum had their longest losing streaks this year.
The GSCI index dropped to 411.42, the lowest since May 15 and leaving prices 51% lower than a year ago.
Crude oil for August delivery fell 1.7% to 61.87 a barrel on the New York Mercantile Exchange as of 8:43 a.m. local time. Prices have declined 16% from an eight-month intraday high of 73.38 on June 30 as higher US unemployment raised concern that the economy of the world’s biggest energy- consuming country will be slow to recover.
Silver for immediate delivery in London fell 1% to 12.995 an ounce and gold declined 0.7% to 918.40 an ounce.
The US Dollar Index, a six-currency measure of the greenback’s value, gained as much as 0.3%, heading for the longest rally since April. Gold typically moves inversely to the US currency.
Platinum retreated for a fifth day to 1,105.25 an ounce, almost an eight-week low, on concern that the auto industry will take longer to recover. Platinum, on its longest losing run since October, is used in autocatalysts to control noxious emissions.
All industrial metals on the London Metal Exchange declined. Aluminum for three-month delivery declined 2% to 1,585 a metric ton and copper fell 0.3% to 4,867 a ton.
Soybeans for November delivery in Chicago was little changed at 8.9525 a bushel and corn added 0.1% to 3.38 a bushel.
