Commodity prices rise due to geopolitical threats
Date
11/25/2024 7:58:53 AM
(MENAFN) Commodity prices surged over the board in the previous week on ongoing geopolitical threats, whereas expectations were made hard because of the surge in the US Dollar Index, fueling worries that the Fed could take longer than estimated in combating inflation.
Many Fed officials alerted that the inflation’s recovery period could end, as the volume cut forecast for the upcoming month declined from 82 percent likelihood to 52 percent in the money markets.
At the same time, Russia’s pressures of nuclear retaliation on Ukraine because of its consumption of US-supplied long-range weapons, the Army Tactical Missile System (ATACMS), gave increase to the demand in safe-haven commodities, including gold and many others.
Gold increased 6 percent per ounce in the previous week, the largest weekly surge since March 2023, despite the increasing alternative price of gold.
Experts from Swiss investment bank UBS stated that central banks will implement a more moderate monetary law against inflationary tensions and the slowdown in economic development, expecting gold prices to keep increasing in the upcoming.
At the same time, the US Dollar Index hit a couple-year high.
Silver rose 3.6 percent in the previous week following the UN assured to invest USD300 billion yearly to combat climate change at the COP29 climate action event conducted in Baku, as it is expected to significantly impact the silver market.
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