Somebody Please Help Me On An Economics Question...

[BCR_9er]

As we all know, the dollar is falling. It has hit been hitting all time lows this month.

But all commodities (i.e. precious metals, wheat, corn, oil, etc.) have been getting VERY low, especially precious metals. In the past two weeks, precious metals such as gold, silver, and platinum have dropped nearly 20-25% and they don't have any signs of slowing down. Oil is down to about $115/barrel.

What has happened (or is happening) in the past two weeks to cause all commodities to drop like a rock? It seems like they should be rocketing, especially with with the dollar at its lowest. Please explain.

[Johnnybags]

As we all know, the dollar is falling. It has hit been hitting all time lows this month.

But all commodities (i.e. precious metals, wheat, corn, oil, etc.) have been getting VERY low, especially precious metals. In the past two weeks, precious metals such as gold, silver, and platinum have dropped nearly 20-25% and they don't have any signs of slowing down. Oil is down to about $115/barrel.

What has happened (or is happening) in the past two weeks to cause all commodities to drop like a rock? It seems like they should be rocketing, especially with with the dollar at its lowest. Please explain.

has occured. Plenty of fuel in the storage tanks,nat gas and oil. The world economy is catching up to us. Recessionlike. Commodities will rise when the rest of the world begins interest rate reductions in earnest.

[Anti Federalist]

As we all know, the dollar is falling. It has hit been hitting all time lows this month.

But all commodities (i.e. precious metals, wheat, corn, oil, etc.) have been getting VERY low, especially precious metals. In the past two weeks, precious metals such as gold, silver, and platinum have dropped nearly 20-25% and they don't have any signs of slowing down. Oil is down to about $115/barrel.

What has happened (or is happening) in the past two weeks to cause all commodities to drop like a rock? It seems like they should be rocketing, especially with with the dollar at its lowest. Please explain.

Actually the dollar has been staging a rally.

http://www.ecb.int/stats/exchange/eurofxref/html/eurofxref-graph-usd.en.html

Scroll the chart all the way to the right for current prices against the euro.

Decreases indicate an increase in dollar value compared to the euro.

That's why commodities are collapsing.

Now, the reasons are more than I'll go into right now, I'll leave that to others.

I'll only say that many consider this to be a sucker's or "dead cat bounce" rally.