The US Federal Reserve's decision to raise interest rates by 75 basis points for the second straight month was echoed by most global banks. This aggressive action by central banks to curb surging inflation has sent commodity markets into a spiral of volatility.

The aggressive tightening has also led to fears of recession which poses to be a further downside for the market. Experts believe that prices will remain volatile for the long term with a mild negative bias in the short term as recession fears will further destroy demand.

Metals have followed the same pattern with prices declining from highs this year. Strict COVID measures in China along with global PMI at its lowest in almost two years has dampened demand for most metals, in turn hitting prices.

Fears of falling demand in the face of weak manufacturing data has caused crude prices to cool off below the $100 mark. Like the rest of the commodity market, oil prices have been volatile, as investors weigh tight global supply with fears of a potential global recession. Slow Chinese production has only compounded market fears as COVID restrictions stifles manufacturing. The drop also comes ahead of a meeting on Wednesday between the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, together known as OPEC+, to decide on September output.

So will recession fears keep the demand dampened? And how much further is the downside for commodities? To answer that CNBC-TV18 spoke to Guy Wolf, Global Head of Market Analytics at Marex and Peter McGuire CEO of XM Australia.

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