The latest FOMC minutes were dovish, especially in light of the recent increase in inflation and elevated asset valuations. What does it mean for gold?Yesterday, the FOMC published minutes from its last meeting in April . They’ve shown two things doing that: first, that some of the central bankers are worried about the inflation and elevated asset valuations; and, second, that the Fed is goi...Read More
This week has been trulybrutal for the entire cryptocurrency sector, with the prices of majorcurrencies like Bitcoin and Ethereum crashing at least 30%. Theoverall sector has shed trillions of dollars in value.The recent carnage forholders of digital currencies could be due to a variety of factors includingprofit taking spurred by Elon Musk, an easing of inflation worries, or concernsabout new reg...Read More
Precious metals are among the best places to park your money in times of economic or political distress. Gold and silver offer stability during a period of extreme stock market volatility and low bond yields, and while they do not pay interest or dividends, they are not subject to inflation like paper currencies. It is also, in my opinion, a smart strategy to allocate a portion of gold a...Read More
When the USDX declines, the PMsusually celebrate and rise as a result. However, this was not the caseyesterday – and we can’t ignore it.“Reversal” is the name of the game, atleast when it comes to the precious metals market.The USD Index declined profoundly onceagain yesterday (May 18), and gold, silver, and mining stocks ignored thismove. They didn’t want to follow i...Read More
Gold recovered after a downward response to the surge in inflation. What’s next for the yellow metal?Gold rebounded after an initially bearish reaction to the BLS report showing that inflation soared 4.2% in April year-to-year. This means we have an inflation annual rate doubling the Fed’s target and the highest since the Great Recession as the chart below shows. It might now seem coun...Read More
Financialmarkets have become a complete joke. From GameStop to Dogecoin to non-fungible tokens(NFTs), a plethora of assets have been pushed to laughable heights with thehelp of the Federal Reserve’s funny money.Justabout everyone, except for stone-faced Fed officials, seems to be in on thejoke.Dogecoinpromoter and billionaire Tesla founder Elon Musk poked fun at cryptocurrencies and the U.S....Read More
Here are five Fastmarkets stories you might have missed on Tuesday May 25 that are worth another look.Exports of iron ore from India's east coast could face minor disruptions after the key port of Paradip in the state of Odisha suspended operations on May 25...Read More
Easy choices lead to a hard life (or atleast losses), and because gold’s downside move is delayed, it’s extremely easyto be bullish on gold right now.It’s easy to get carried away by theday-to-day price action, and it’s even easier to feel the emotions that othermarket participants are feeling while looking at the same short-term priceaction. Right now, it’s tem...Read More
In the first portion of this research article, I highlighted the correlation between Gold and the US Dollar as well as the correlation between the US Dollar and the EURUSD and JPYUSD. The purpose of this example was to highlight the different phases of US Dollar appreciation vs depreciation compared to the EURUSD/JPYUSD. The EURUSD and JPYUSD are often compared to the US Dollar as majo...Read More
Aluminium premiums remained high across the globe in the week ended Tuesday May 25 due to tight supply and high logistics costs.Rotterdam premiums well supportedUS Midwest premium remains at all-time highOpen arb pushes Shanghai premiums upwardMJP focused on third quarterLME contango supports Rotterdam premiumsAluminium premiums in Europe remained well supported this week with offer levels continu...Read More
The United States is "deep in conversations" to determine how the federal government can support the growth of electric vehicles (EVs), the country's Secretary of Transportation said.The country's goal of reducing carbon emissions by at least 50% by 2030 is helping to drive this collaboration, according to Secretary Pete Buttigieg."We're deep in conversations about how to support the EV revolution...Read More
A summary of base metal premiums from across the globe for the week to Tuesday May 25.Please click...Read More
Here are five Fastmarkets stories you might have missed on Tuesday May 25 that are worth another look.Exports of iron ore from India's east coast could face minor disruptions after the key port of Paradip in the state of Odisha suspended operations on May 25...Read More
High freight rates are pushing prices along the aluminium supply chain to multi-year highs, but there is one area where it is having the opposite effect: alumina.Alumina prices have been under pressure because of oversupply and high freight costs deterring buyers in China from importing despite low prices.Fastmarkets assessed its daily benchmark alumina index, fob Australia at $274.15 per tonne on...Read More
Market chatter about China possibly imposing new export taxes for steel as part of commodity price cooling measures has been rampant in the past week, causing traders and market participants to re-think their trading strategies, and overseas buyers to consider a potential supply shortfall.The taxes are supposed to take place from June 1, but there has been no official statement by China's Ministry...Read More
There are a few clues about how this is likely to play out...Jim Forsythe with Chris Marcus on Arcadia EconomicsWatch out for silver "spoof" prior to options expirationTuesday is silver options expiration on the COMEX. And with the way the board is lined up, there are a few clues about how this is likely to play out.To find out more, click to watch the video now!FULL SHOW NOTES AND LINKS HERE Read More
The three-month prices of zinc and lead were the only ones to rise on Tuesday May 25, while other futures contracts on the London Metal Exchange ended the day lower, with consolidation continuing in the base-metals complex.The price of the galvanizing metal rose to $2,982.50 per tonne from Monday's 5pm price of $2,948.50 per tonne. One week earlier, zinc had reached its latest year-to-date high at...Read More
Seaborne iron ore prices rose on Tuesday May 25, on support from a trading activity recovery in the physical market, sources told Fastmarkets.Fastmarkets iron ore indices62% Fe fines, cfr Qingdao: $192.87 per tonne, up $0.45 per tonne62% Fe low-alumina fines, cfr Qingdao: $194.49 per tonne, up $0.62 per tonne58% Fe fines high-grade premium, cfr Qingdao: $165.02 per tonne, up $1.55 per tonne65% Fe...Read More
Base metals prices on the London Metal Exchange and Shanghai Futures Exchange were mainly positive on the morning of Tuesday May 25, with only SHFE lead showing significant weakness. Broader markets seem to have become more risk on again after US central bankers stuck to their dovish guidance.Asia-Pacific equities were firmer this morning, especially in China where government action has calmed inf...Read More
Access our research platformsSign-in to our platforms to access our extensive research, our latest insight, data and analytics and to connect to our industry experts.The steady climb in copper prices since mid-2020 – and the more recent launch into the stratosphere – puts me in mind of Senator Gracchus in the film Gladiator. Specifically, his observation that fear and wonderment is a p...Read More