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Thoughts on metals given recent CPI and Fed speak
Watching metals closely here after the latest CPI print came in a bit hotter than some expected, followed by a few hawkish comments from Fed members. The dollar has predictably found a bit of a bid, which usually isn't great for the likes of gold or silver, but there's a flip side. If the market starts pricing in higher for longer on rates, industrial demand might get squeezed, but haven't seen a significant pull back in $GC_F yet. It's making me wonder if the inflation hedge narrative is just that strong, or if we're just waiting for the next catalyst before a clearer direction emerges. My watchlist is heavy on gold miners, but I'm holding off on new entries until there's more clarity on real rates.
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I'm seeing a similar dynamic. While a stronger dollar and higher rates typically pressure precious metals, the underlying inflation narrative from the CPI print could provide some support longer term as a hedge, especially if growth concerns persist.