• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 51 mins Cheaper prices due to renewables - forget it
  • 1 day e-cars not selling
  • 3 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 21 hours If hydrogen is the answer, you're asking the wrong question
  • 8 hours How Far Have We Really Gotten With Alternative Energy
  • 20 hours CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
What Peak Demand for Fossil Fuels Will Look Like

What Peak Demand for Fossil Fuels Will Look Like

The International Energy Agency's World…

COP28: Policymakers Should Focus on Energy Tech

COP28: Policymakers Should Focus on Energy Tech

Politicians should acknowledge that the…

New Technology May Reduce Battery Fires

New Technology May Reduce Battery Fires

This new design for a…

Stuart Burns

Stuart Burns

Stuart is a writer for MetalMiner who operate the largest metals-related media site in the US according to third party ranking sites. With a preemptive…

More Info

Premium Content

Commodity Prices Dip As Dollar Surges

It won’t have been missed by anyone in the metals markets, but commodity prices have drifted off this past week. The reason is a resurgent dollar.

Commodity prices down on stronger dollar

It’s a simple but well-worn mantra: a stronger dollar equals weaker commodity prices.

Policymakers at the Federal Reserve advised Wednesday that interest rates would rise from record lows sometime in 2023, updating an earlier forecast of rises not until 2024.

 The more bullish position on rates boosted the dollar. As a result, the dollar index gained 1.5% over the last week. That marked its best result since last September.

In turn, commodities took a hit across the board.

Gold traded at $1,788 an ounce, a decline of about 4% from the start of the week. That marked its worst performance in 15 months.

Meanwhile, Brent crude fell for a second day running towards the end of the week, dropping below $70.40 per barrel overnight before recovering to $72.60 per barrel Friday morning. Related: Hedge Funds Grow More Bullish On U.S. Crude Oil

Most of the base metals have come off, too. Most of the leading currencies have slipped against the dollar, with the Pound falling below 1.40 and the Euro below 1.20 for the first time in weeks.

Central banks on the move

In the absence of any other driving dynamic, markets are taking direction from the dollar. In turn, the dollar is taking heart from the Fed.

But the Federal Reserve is not alone in bringing forward likely rate rises.

Norway’s central bank is planning to raise rates this September, according to the Financial Times. A second rate rise there is possible as soon as December.

Meanwhile, Canada’s central bank has scaled back its bond-buying from April. It is the first to reduce its quantitative easing (QE) stimulus. While no others have made announcements about imminent changes, the trend is developing for less QE and higher rates.

The positive takeaway is central banks are seeing growth as robust enough for monetary policy to gradually return to some sense of normal.


For that, we should all be grateful.

By Stuart Burns via AG Metal Miner

More Top Reads From Oilprice.com:

Download The Free Oilprice App Today

Back to homepage

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News