A falling and collapsing U.S. dollar, along with growing demand for oil has helped push up commodity prices, helping to rescue a poor performance by commodities in the third quarter.
Much of the six percent increase in oil prices came from government data showing gasoline inventories had dropped in the United States, catching some by surprise and pushing up prices. Gasoline demand also increased, having an effect on prices.
With the U.S. dollar also continuing to plunge in value, it spurred buying in other commodity sectors like sugar, cocoa, gold and copper, which also increased in price as investors took advantage of dollar-denominated commodities, which were cheaper as a result.
This will continue to go on once real recovery begins, as emerging middle classes in Asia drive demand for commodities for a long time into the future.
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