Commodities Price Surge Drives Mining Stocks to Record Highs
The price of precious metals and other commodities is on the rise due to a weak US dollar. The US Dollar Index, which measures the greenback against a basket of foreign currencies, has fallen below its 200-day moving average and reached its lowest level since May.
This decline in the dollar creates inflation in the US, making it take more dollars to buy an ounce of gold or a barrel of oil. As a result, commodities prices are increasing.
The price of gold has climbed by nearly 15% since the start of this month and is trading above its 200-day moving average for the first time since June. Copper is also headed for a significant breakout after forming an ascending triangle pattern.
Three mining stocks, Freeport McMoran (FCX), BHP Group Ltd (BHP), and Newmont Corp (NEM), are well-positioned to benefit from this increase in commodities prices. Their stock prices have broken out of their respective bases and are expected to reach new highs.