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 keeps range around 0.6500 after RBA Minutes
AUD/USD trades in a narrow range at around 0.6500 in Tuesday's Asian trading. The pair draws some support from the hawkish RBA Minutes and China's stimulus hopes but the upside remains limited ahead of mid-tier US data and Fedspeak.
USD/JPY pulls back sharply to 154.00 amid looming Japanese intervention risks
USD/JPY is testing bids just above 154.00 in the Asian session on Tuesday after facing rejection at 154.70. There are no catalysts seen behind the latest leg down but looming Japanese internetion remains a risk to the pair's upside. The pair seems to have surrendered to some technical selling.
Gold price extends recovery above $2,600 on softer US Dollar
Gold price gathers recovery momentum above $2,600 early Tuesday. In the absence of high-tier data releases, escalating geopolitical tensions between Russia and Ukraine help Gold price recover some ground. A sustained US Dollar pullback also aids the Gold price turnaround ahead of Fedspeak.
Bitcoin could see another parabolic run following rising institutional interest
Bitcoin (BTC) began the week positively, rising over 3% above the $91K threshold on Monday. Despite the recent rise, BTC could begin another extended bullish move as top firms are increasing their Bitcoin holdings and potentially adopting it as a reserve asset.
The week ahead: Powell stumps the US stock rally as Bitcoin surges, as we wait Nvidia earnings, UK CPI
The mood music is shifting for the Trump trade. Stocks fell sharply at the end of last week, led by big tech. The S&P 500 was down by more than 2% last week, its weakest performance in 2 months, while the Nasdaq was lower by 3%. The market has now given back half of the post-Trump election win gains.
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