Phil Carr
The Gold & Silver Club
Commodity prices are surging across the board with everything from the metals, energy to agriculture markets, trading near multi-year highs as the supercycle gathers pace.
Last week, Iron Ore broke $200 a ton for the first time ever. Palladium broke above $3,000 to hit a new record high and Copper prices surpassed an all-time high.
The bullish momentum also split over into the precious metals with Gold prices rising for a second straight week in a row to settle at its highest since February. While Silver prices closed the week trading near 3-months highs.
There are plenty of reasons why commodities are on the move, but the key driver is rising inflation, which has spurred significant demand for assets with inflation-hedging capabilities.
U.S Inflation in April accelerated at its fastest pace in more than 12 years with CPI jumping a sizzling 4.2% from a year earlier. The increase in the annual headline CPI rate was the fastest since September 2008, while the monthly gain in core inflation was the largest since 1981.
Looking ahead to this week, the key macro events that traders will be watching closely for clues on the markets next big move include; the FOMC meeting minutes from April, Jobless claims, Flash PMI estimates as well as comments from a host of Fed speakers.
Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:
Trading has large potential rewards, but also large potential risk and may not be suitable for all investors. The value of your investments and income may go down as well as up. You should not speculate with capital that you cannot afford to lose. Ensure you fully understand the risks and seek independent advice if necessary.
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AUD/USD holds below 0.6150 on bullish US Dollar, stronger US NFP report
The AUD/USD pair remains on the defensive around 0.6145 during the early Asian session on Monday. The US job growth came in stronger than expected in December, supporting the US Dollar broadly.
USD/JPY ticks higher amid BoJ uncertainty, hawkish Fed expectations
USD/JPY kicks off the new week on a positive note and remains close to a multi-month top touched on Friday amid doubts over the BoJ's rate-hike plans. Meanwhile, the strong US jobs data reinforced expectations that the Fed will pause its rate-cutting cycle, which remains supportive of elevated US Treasury bond yields.
Gold loses ground below $2,700 amid firmer US Dollar
Gold price trades with mild losses near $2,690 on the stronger US Dollar broadly during the early Asian session on Monday. However, the safe-haven demand due to uncertainty surrounding the President-elect Donald Trump administration's policies might help limit the Gold’s losses.
Week ahead: US CPI and China GDP in focus, UK data eyed too as Pound skids
US inflation report to take centre stage as Dollar remains well bid. China’s economic policies to come under scrutiny as Q4 GDP on tap. UK CPI and GDP figures to be watched as Pound’s pain worsens.
Think ahead: Mixed inflation data
Core CPI data from the US next week could ease concerns about prolonged elevated inflation while in Central and Eastern Europe, inflation readings look set to remain high.
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