Firmer dollar unlikely to upset commodities

A crumbling dollar helped spur this year’s commodity price surge, but a rebound in the U.S. currency now does not mean necessarily that prices of industrial metals or oil will fall.

Increasingly the focus is on tightening supplies of raw materials and on escalating demand, particularly in China, India and other emerging economies.

The only commodity expected to come under significant pressure from any further recovery in the dollar is gold, which is used as a currency substitute and a financial instrument in much the same way as stocks and bonds.

Reuters