The CRB index plunged 3.9% to settle as 217.11, the lowest level since April1, Monday as led by sharp falls in oil and copper prices. WTI crude oil for May delivery dropped 8.8% to close at 45.88 while the more active June contract lost 7.5% to 48.51. Strength in USD together with still-gloomy demand outlook were drivers for the decline. Comex copper futures for July delivery slumped more than 4% to close at 2.105 Monday. The gauge extends further weakness today and is currently trading at 2.04.

IEA's comment on OPEC's production cut displayed the fast-deteriorating demand condition in oil market. According to the agency's Executive Director Nobuo Tanaka, 'If demand is declining, cutting production will not push the price up. If demand shows some recovery, the tighter market will come back at the end of the year or later', implying OPEC's supply reduction in May might not help pushing oil price higher.

The dollar index surged to as high as 86.87, 1-month high, as the dollar gained against all major currencies. Stock markets declined yesterday with Dow Jones Industrial Average losing 3.6% and S&P 500 sliding 4.3% as credit concerns on banks loomed. Bank of America sank 24% while Citigroup lost 19%. In Asian morning, the MSCI Asia Pacific Index plummets 2.2%. In Japan, Nikkei 225 Stock Average slips 2.7% as led by profit concerns on Toyota and Sony.

Rise in risk aversion did not only boost the dollar but also gold price. The benchmark contract soared 2.2% to 887.5 Monday (current: 888.8). Despite bullish comments from the Fed last week, IMF said that a global recovery will not come until 1H10 the earliest. In a report to be released tomorrow, the IMF will likely further revise down it economic projections.

Moreover, inflation expectation may be reignited by Martin Feldstein's, a member of President Obama's Economic Recovery Advisory Board, speech that the 'unprecedented explosion' of the US fiscal deficit raises the possibility of high future inflation. According to Feldstein, the ratio of government debt to GDP would be increased by 2 times to about 80% of GDP over the coming 10 years. There's high risk that large US fiscal deficits will lead to expansion in the money supply which is theoretically inflationary.

Platinum will probably fall for the 4th consecutive day after a 3.7% plunge to 1167 Monday. Investors concerned about actually demand after economic data showed that the US economy remains bleak and GM, the biggest automaker in the US, announced plans to fire 1600 salaried workers this week.