Which US presidential candidate does gold prefer?
Gold loves chaos and should be hitting new highs, especially with inflation coming down and with it, two rate cuts likely before year’s end.
Copper prices fell on Wednesday as the threat of rising interest rates dampened the economic growth outlook and held the dollar near 20 year highs.
With data on Tuesday showing higher-than-expected US inflation, expectations are for a 75 basis points rate increase from the Federal Reserve next Wednesday.
Copper for delivery in December fell 1% from Tuesday’s settlement price, touching $3.52 per pound ($7,744 per tonne).
The dollar also hit its biggest one-day price since March 2020.
“Where’s the growth?” said a trader in London, suggesting that metals prices may fall further.
“If the US is raising rates faster than other countries, that will exert upward dollar pressure and all commodities priced in dollars will take a hit,” said WisdomTree analyst Nitesh Shah.
[Click here for an interactive chart of copper prices]
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