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Hansen: Commodities in crisis as prices hit 16-year low

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The Baltic Dry Index, a measure of global trade, is at its lowest ever, while the Bloomberg Commodity Index hit a 16-year low this week. Saxo's Ole Hansen explains why China, the strong dollar and uncertainty over December's Federal Reserve meeting continue to affect the markets.

Even though crude oil is oversupplied at the moment, Hansen believes it's looking increasingly oversold. As the OPEC basket price is below USD 40, for the first time since 2009, he says the organisation's meeting in Vienna next month will be particularly interesting.

Gold, meanwhile, has hit a new five-year low as the market focuses on the strengthening dollar and December's Federal Reserve meeting. He explains why is looking for consolidation.