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Higher for longer hurts precious metals in the near term as the market discounts tighter policy and higher real rates. However, higher for longer could bring rate cuts and policy easing much sooner than if the Fed stopped at 5%.
If the Fed follows through on higher for longer, it could end up being a huge catalyst for precious metals. History shows that during inflationary periods the Fed was very quick to go from a rate hike to a rate cut.
The reason is a recession suddenly brings about lower inflation and lower inflation expectations.
OPEC and OPEC+ will meet on June 4 to discuss oil production. Traders should be on watch to see whether OPEC decides to keep production steady or to implement further oil...
After more than 6% loss for May, gas’ ability to resume upside is in question Bears cite ever-rising output, throttled LNG exports, and weak demand for cooling Bulls say potential...
The best historical comparison for Gold and precious metals is not the 1970s or 2008. It is the mid-1960s, during which gold stocks (the proxy for gold) broke out from a long base....
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