By The recent recovery of the dollar has caused a decline in the prices of metals and other raw materials. Last week, the dollar weakened against other currencies, which in turn boosted commodity prices due to its significant role in pricing commodities worldwide. The dollar had initially faced downward pressure due to a shift in expectations regarding Federal Reserve policy. However, some strategists are now cautioning that the Fed may still continue its efforts to combat inflation, despite a perceived change in rhetoric.
The October employment statistics, along with Chairman Jerome Powell’s recent statements, have led investors to believe that interest rate hikes may no longer be imminent. J.D. Joyce, president of Houston financial advisory Joyce Wealth Management, explained, “Though it seems that investors currently view hikes as a thing of the past, we cannot draw conclusions from just one report. Time will reveal whether another rate hike is on the horizon or not. Essentially, it looks like we should brace ourselves for an extended period of elevated interest rates, unless further data confirms a significant slowdown in inflationary pressures.”
Amidst all this, Newmont, following its acquisition of Australia’s Newcrest Mining for $15 billion, is now considering the future prospects of the Cripple Creek & Victor gold mine in the United States, according to Chief Executive Tom Palmer.
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