Crude prices have come down from a record high of 7 years, but the price of gold and silver remains at a 2-month high. Meanwhile, due to the rise in base metal prices, the price of copper is at a 3-month high. On the other hand, nickel continues to rise for the second consecutive week.
increased luster of base metal
Base metals prices have risen on the LME. For the third consecutive week, aluminum is seeing a boom and its price is trading up about 2%. Aluminum prices have risen by about 10.50% in three weeks. For the fourth consecutive day, the price of zinc has risen and it has gained about 3.50%. Nickel prices continue to rise for the second week. Nickel has gained 14.25% in 2 weeks. Copper price has reached a 3-month high. Copper prices have also risen by more than 3.50% in 2 weeks.
What is the reason for the acceleration?
If we look at the reason for the rise in base metals, then due to the increase in unemployment rate in the US, the prices of base metals have increased. The unemployment rate in the US has reached a 3-month high. A weakness in the dollar also supported the prices. The fall in bond yields also pushed up the prices of base metals.
Gold Price Today: Gold rises and silver has crossed 65000, know how expensive gold and silver became today
increased luster of gold and silver
Even today, on Comex, gold has reached a high of 2 months. The price of gold remains above $1840. Gold has reached 4-week high on MCX. The price of gold on MCX has crossed 48000. Silver has reached a 2-month high on COMEX and is trading above $24.
If we look at the growth of gold and silver, then investors are apprehensive of increasing interest rates in March. The rise in crude prices has also led to a rise in its prices. Hedging in gold against inflation has increased. Gold prices have also risen due to the weakening of the dollar. On the other hand, due to increase in industrial demand, the price of silver has gone up. Its prices have also increased due to geopolitics tensions.
Crude softening
Crude falls below 7-year high. Brent’s price has come below $87. In two days, the price of Brent has fallen by about 2%. The price of WTI has also come down to $84.
Talking about the fall in crude oil, the fall in crude oil prices has been due to profit-booking after the rise. It is also under pressure due to increase in crude inventories in the US. Weakness in dollar, bond yield also led to fall in crude oil prices. The decrease in supply has led to a rise in prices. The pressure in the equity market is also affecting the prices. The Fed may start raising rates from March. The US Fed will meet on January 25-26. Investors are keeping an eye on the Fed’s meeting and minutes.
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