The Bloomberg Commodity Spot Index, a key gauge of commodity prices, fell 3.1 percent Friday, its lowest level since July, as investors dumped risky assets amid fears of a global recession.
The index, which tracks futures contracts for various commodities from oil to copper to cotton, has lost more than 20 percent since peaking last June.
Global inventories of many commodities remain tight amid strong demand.
However, investors around the world are increasingly concerned that significant interest rate hikes by the U.S. Federal Reserve and other central banks, as part of their efforts to curb the highest inflation in decades, will plunge the global economy into recession.
In addition, the soaring dollar is weighing on dollar-denominated commodities as it reduces the purchasing power of other currencies, further worsening demand prospects.
A significant drop in commodity prices-including fuels, staples, and building materials-would be a relief to consumers after the cost of everything skyrocketed in the aftermath of the pandemic.
With information from Bloomberg in linea