Daily Close | Forex, Metals, Oil, Agriculture June 17, 2021

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Currencies

Oil prices saw a dramatic drop from yesterday’s two-year high, dampened by a strengthening U.S. dollar as well as hesitancy surrounding commodities in the wake of China’s regulation decisions. Record dollar-shorts are getting thumped in the process, and record commodity longs and equities riding the other end of the dollar teeter-totter are dropping sharply. As has been the pattern, the US dollar bounced sharply on the prospects of less financial liquidity, and it’s rallied further today.
That being said, the dollar is up higher, weighing significantly on the current price of gold and silver.

Metals

Consequently, the gold price, spot price of silver, and other precious metals nosedive and continue to sink today. He is well known for combining technical, fundamental and sentiment analysis into one accurate conclusion about the gold market. As well he is publishing his bi-weekly comprehensive for his numerous international readers focusing on Gold, Silver, Mining, commodities and cryptocurrencies. Silver is still stretched, lagging, while Gold is currently taking a breather and hence getting ready to approach the US$2,000 mark.
He writes a bi-weekly in-depth analysis for one of Germany´s largest gold and silver retailer the “pro aurum group”. Inflation is something that contributes greatly to the spot price of silver and gold. Basically, this is not a positive outlook for physical gold and silver, and people may be running back to cash. Additionally, bond and note yields rose, which tend to trade inversely with the gold price. August-dated gold dropped to its lowest level in almost seven weeks, shedding $86.60, or 4.7%, to settle at $1,774.80 an ounce.
Meanwhile, gold prices logged their biggest one-day percentage drop in 2021, moving lower as the greenback swelled. Recent trading sessions have driven Silver and Gold to lower levels. Most likely gold will go beyond that level. China’s decision to release reserves of several key metals, including copper, is also putting weight on the materials sector, with names like Dow Inc (DOW), and Caterpillar (CAT) slipping.
But how does this affect the gold price? Consequently, Silver is catching up with Gold. less Tied to the hip to Gold, it is essential to keep an eye on the Gold/Silver-ratio. Consequently, this would represent added turbo fuel to a more sustainable Silver upward movement. The Gold/Silver-ratio can help identify relative strength/relative weakness relationships between the two metals. His unique has an outstanding track record and helps investors all over the world to make better decisions in the gold-market.

Oil

Further, rising oil prices will act as catalysts given that most banks are highly exposed to the energy sector. As a result, July-dated crude lost $1.11, or 1.5%, to settle at $71.04 per barrel. Oil, food, metals–precious and not, are no different.

United States

Sign up to start a The Fed has signaled a hawkish stance in its latest FOMC meeting though it has kept interest rates near zero. Most other bond yields rose 3-4 basis points, tracking the US benchmark bond yield that jumped 7.5 basis points.“The Fed’s ‘U’ turn resulted in risk-off trade across the globe. Some commentators used those reactions to claim the Fed changed its policy even though there was no hike or end to QE announced. The Fed didn’t hike rates, but the dot plot forecasted more hikes which is reactionary.
The Fed announced the move towards a hawkish monetary policy, which means they are strategizing about tackling inflation. Powell banished the use of the phrase during yesterday’s press conference, and the Fed appeared to make a tentative step towards making a move. Inflation is on the rise, but apparently not at a rate the Fed deems problematic. That, UBS added, takes reserves out of the banking system, which should slightly reduce the odds of balance sheet stress at year-end.”
The Nasdaq, meanwhile, logged a triple-digit pop, as investors shifted out of materials and took refuge in the tech sector.
Inflation has also risen though the Fed views this as temporary. Bond investors took the Fed’s message to heart. Official Fed guidance didn’t change, but members have altered their views. He has been quoted in a variety of financial news publications, such as CNBC, the Wall Street Journal, and the New York Post. I immigrated to the US from Russia in 1991 with all my family – my three brothers, my father, and my stepmother. Research from our team of in-house analysts has been quoted by The Wall Street Journal, Bloomberg, MarketWatch, USA Today, Kitco, Reuters, US News & World Report, CNBC, and more.
Some speculate that the Fed is testing the market reaction. Last week it started trading on (Nasdaq: COIN).

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