The price control of the commodities depends on various factors including the US infrastructure investment, and vaccination drives. Additionally, the performance of the US equity market and flexible monetary policy by the central bank are other reasons.
Earlier, in the March beginning, the golf prices declined in the three-week low. However, the price went up to around $1,715 per ounce in the quarter-end and last trading session.
The London Metal Exchange (LME) showed the price of copper at $9,000. Also, the crude oil price recorded $60 per barrel.
The pressure on the commodities is prominently due to the unceasing rise in the US dollar.
Additionally, the US dollar index increased high for the third consecutive month. Also, the constant rise in US currency was after the rise in the bond yields.
As per the reports, the vaccination process in the US is on the top as compared to other countries. For the US economy, the surge in yield and currency is a cause for its growth.
The US economy performs well even in case of rising in the tax after the announcement of the infrastructure plan.
Also, in Europe, the inefficient vaccine provision and a sudden rise in the virus spread affected the country.
Dollar performance stands on top position in the current times. Also, the price correction in the currency affects the position of the commodities in the market.
The correction in the currency is certain depending upon the virus situation across the world. The vaccination provision and reduction in the spread would bring the economic pace of the countries back.
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