The strong Canadian dollar pushed the price for Canadian commodities down in November, TD Bank economists said today.

With commodity prices nearing a cyclical peak, they predict the TD commodity price index will fall by 10% in 2005.

The bank said energy prices are expected to see the biggest declines in 2005, with crude oil falling to US$39 a barrel next year and US$36 in 2006.

In November, the TD Economics 18-commodity price index fell by 2.5% as the price for crude oil dropped sharply. Lumber, nickel, aluminum, barley and cattle showed more modest losses.

Prices for gold, silver and hogs, however, were up in November.

“Looking ahead, commodity prices are likely at, or near, a cyclical peak,” Craig Alexander, vp and deputy chief economist at TD, said in a release.

“Even with the forecast pullback, the level of commodity prices should remain relatively profitable to most industries. Nevertheless, it should be noted that from the point of view of the Canadian economy, rising commodity prices will not be available to provide an offset to any future appreciation in the Canadian dollar.”

TD also forecast that precious metals prices will be an exception to the downturn and said it expects the weakening U.S. currency to push the price of gold to US$475 per ounce next year, up about five% from its current level of US$452 US per ounce.