Apprehensions of a slowdown in the global economy, led by a deceleration in the US and China, has led to a fall in the prices of several commodities over the past week or so. There are concerns the Chinese economy would lose momentum in the wake of lockdowns to fight Covid and the US economy will decelerate as interest rates rise.
Oil prices fell nearly 5% on Monday, hitting their lowest levels in a fortnight. The price of metals like palladium have tumbled in the spot market, while copper has fallen 7% in five sessions. Silver prices have come off by close to 9% over the same period; gold prices are down about 4%. Analysts said the broader commodities sell-off is a result of fears that demand will fall off as major economies slow.
