Crude Surge and Tariffs Weigh on Gold, Fertilizer Prices Skyrocket
Rising crude oil prices and a strengthening US dollar have negatively impacted gold's outlook. Despite reaching $4,150 on Friday, many analysts are now predicting that Federal Reserve interest rates may remain unchanged or even rise throughout the year. This shift in perspective is causing some market participants to reevaluate their positions.
Meanwhile, silver contracts are also showing a sideways pattern, mirroring gold's recent price action. The commodity markets are closely watching developments in the Middle East, particularly US-Iran tensions, which could lead to inflation and impact investor sentiment.
The situation is not limited to metals, however. Fertilizer prices have increased due to shipping constraints and the ongoing conflict in the Strait of Hormuz. This has put pressure on farmers' profits, leading some to delay machinery purchases to cope with rising fertilizer costs.