Risk On vs Risk Off -
My Comment : Industrial commodity prices are surging while PMs falter. For now risk on prevails. What happens when there's risk off. And with all of the projected stimulus, is risk off even possible in the near term. Inflation is certainly a likely possibility. Will inflation wake up the PMs ?
February 17 – Bloomberg (Naureen S. Malik, Gerson Freitas Jr. and Michael Tobin): “There’s no sign yet of a pause in the dramatic rally in natural gas prices across the central U.S., where spot rates have now breached the $1,000 mark, more than 100 times their level just a week earlier. Prices for immediate delivery are skyrocketing as consumers scramble to find additional supply. U.S. production has fallen to a four-year low, causing a shortage that has left millions of homes and business in the dark and forced food giant Cargill Inc. to halt production at three of its meat processing plants… Supply for next-day delivery at the Oneok Gas Transportation hub in Oklahoma traded at $1,250 per million British thermal units on Wednesday… That’s up from $999 on Tuesday, and just $9 a week ago.”
The Bloomberg Commodities Index added 1.5% (up 9.3% y-t-d). Spot Gold fell 2.2% to $1,784 (down 6.0%). Silver slipped 0.3% to $27.2899 (up 3.4%). WTI crude dipped 23 cents to $59.24 (up 22%). Gasoline surged 6.8% (up 28%), and Natural Gas jumped 5.4% (up 21%). Copper surged 7.6% (up 16%). Wheat rose 2.2% (2%). Corn gained 1.0% (up 12%). Bitcoin jumped $7,682, or 16%, this week to $55,629 (up 91%).
AI
