Both oil and copper were trading lower on Tuesday but remained near their cycle highs reached earlier this week. 

As inflation continues to ravage through the world and everybody sees it but the Fed, investors are still betting heavily on these two commodities as they tend to be the best inflation hedges. 

Moreover, gold and silver surged yesterday in what looks like a short-squeeze move. The rally was really violent and caught many traders off guard. Silver rose toward 27 USD, while gold nearly touched the 1,800 USD level.

Monday’s US manufacturing fell short of expectations and dropped to 60.7 from 64.7 in April, while the prices paid subindex stayed near record highs. Therefore, it looks like stagflation is coming – weaker growth and higher prices. 

Elsewhere, the Nasdaq 100 index is down four days in a row, which is really unusual. Other indices are holding strong for now. 

In the FX, the USD is erasing yesterday’s losses, with the EURUSD pair attacking the 1.20 barrier to the downside again. 

Source: https://www.axiory.com/market-news/oil-and-copper-near-cycle-highs-amid-inflation-pressures

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About Author

Peter Bukov

Peter comes from a background in corporate finance which began in 2013 when he completed the Corporate Finance Program at the University of Economics in Bratislava. He’s been actively involved in the market sector since 2008 and got his hands-on experience in trading in 2011. His experience in finance and trading continues not only as a market analyst at Axiory Intelligence but also through his studies to obtain a degree in Capital Markets. The study is in line with MIFID II regulations and is under the supervision of the European Regulator ESMA, which strongly emphasizes ethics and morale in investing and working with a client.

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