Financial Analyst/Content Writer, RADEX MARKETS
Lawrence J. came from a strong technical and engineering background before pivoting into a more financial role later on in his career. Always interested in international finance, Lawrence is experienced in both traditional markets as well as the emerging crypto markets. He now serves as the financial writer for RADEX MARKETS.
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Gold and silver are showing very little signs of support early this morning. The two precious metals sunk lower yesterday as markets succumbed to inflationary fears and the dread of re-escalation in the Middle East. Gold lost $70 per ounce on Tuesday and has already shed the same again in today’s session. Silver, which closed yesterday at $65 per ounce, is already 2% in the red this morning. Platinum is off to an equally poor start, plummeting below $1,700 per ounce and incurring a 3% loss so far today. On the war front, US strikes against the Iranian regime in response to a downed helicopter appear to be over and contained, with peace talks remaining unaffected by the latest military back-and-forth. Crude oil prices are steady so far this morning, with Brent Crude sticking to $92 per barrel and WTI trailing behind at a modest $89. Bitcoin is likewise trading flat, clinging onto $61,000 for dear life.
Markets around the world are eagerly awaiting the latest reading on US inflation. The May CPI report is scheduled for release later today and will likely shape interest rate expectations between now and the end of the year. Current predictions are leaning towards a 4.2% inflation rate, up from 3.8% the month prior. A surprise cooldown in consumer prices would be music to the ears of many investors, particularly those in precious metals or cryptocurrencies, because it would imply that the Federal Reserve has no reason to enact a rate hike in order to contain inflationary pressures. On the other hand, a hotter-than-expected CPI reading would signal a probable intervention by the US central bank. Given the jitters pervading Wall Street over the past couple of days, markets are expecting the latter. The uncertainty was particularly apparent in US stocks on Tuesday, with sizeable intra-day wicks being painted across the major indices. Futures are down marginally going into today’s trading while Asian markets are noticeably flat.
About the Author
Lawrence J. came from a strong technical and engineering background before pivoting into a more financial role later on in his career. Always interested in international finance, Lawrence is experienced in both traditional markets as well as the emerging crypto markets. He now serves as the financial writer for RADEX MARKETS.
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