Commodity prices are on track for their worse monthly drop since 2011, and one NYMEX trader sees more pain ahead. ‘We’ve seen a little bit of a rebound pop here on the last day of the month, but for the moment the trend continues to be lower for commodities across the spectrum, whether it’s energy products, gold, or even base metals like copper,’ said Eric Zuccarelli, an independent metals trader. Zuccarelli said gold prices set a technical bottom last week at $1,070 an ounce, which was followed by a bounce to about $1100. ‘However that technical level really doesn’t mean anything in the larger scheme of things, and I certainly think at some point we’ll be heading lower and certainly test $1000 by the end of the year,’ said Zuccarelli, who said the strong dollar continues to weigh on the metal. Zuccarelli is also bearish on oil prices, even as crude had a slight bounce on this week’s report of a surprise drawdown of oil stocks in the U.S. ‘When you have Iraq and Saudi Arabia producing at record high levels, and combine that with the United States, the glut continues,’ he explained. He also cited the prospects of Iranian oil hitting the market, which would further disrupt the supply/demand equation. He said oil prices may touch lows hit last winter, near $40 a barrel.
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