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.
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Commodity prices down on stronger dollar
It’s a simple but well-worn mantra: a stronger dollar equals weaker commodity prices.
Policy makers 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 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…