Phil Carr
The Gold & Silver Club
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:
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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GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
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Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
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Week ahead – US GDP and BoJ decision on top of next week’s agenda
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