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More stimulus is coming – But what does that mean for commodity prices? [Video]

Last week, President Joe Biden unveiled his ambitious $2.3 trillion Green Energy and Infrastructure spending plan, to transform the U.S. economy.

Similar to the $1.9 trillion stimulus plan signed only a few weeks ago – Biden’s new package will involve pumping hundreds of billions of dollars into improving the nation’s aging roads, bridges, schools, railways, waterways, airports and cellular network.

One of the highlights was $174 billion investment into Electric Vehicles and billions more for renewable energy initiatives – with the goal to build a national network of 500,000 electrical vehicle charging stations by 2030.

Biden’s massive Green Energy and Infrastructure spending plan, ultimately means that the U.S is going to need more commodities.
Specifically industrial metals and lots of them including: Copper, Palladium, Platinum, Silver, Lithium, Nickel and rare earth metals for batteries and 5G technology.

However, supply is limited – which is yet another indication that we could be on verge of a new supercycle in commodities as demand outstrips supply this year.

Looking ahead to this week, the key events that traders will be watching closely for clues on the markets next big move include; the FOMC meeting minutes from March, U.S. Factory Orders, the ISM Non-Manufacturing Report and PPI data.

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:

Author

Phil Carr

Phil Carr

The Gold & Silver Club

Phil is the co-founder and Head of Trading at The Gold & Silver Club, an international Commodities Trading Firm specializing in Metals, Energies and Soft Commodities.

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