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Commodity prices fell as the dollar index gained 1.5% over the week after the Fed moved its rate-hike forecast to 2023. Gold dropped about 4% to $1,788, its worst performance in 15 months, and Brent slipped below $70.40 before recovering to $72.60.
The stronger dollar on Fed rate signals is pressuring commodity prices across the board, which tends to lower dollar-priced feed ingredient costs but adds to currency pressure on importers.
oilprice.comStuart BurnsJun 21, 2021After 2,356 past bullish macro events, US Dollar (Broad) moved a median +0.2% over 5 sessions (60% higher; middle half -0.3% to +0.7%), and +0.4% over 20.
After 312 past bearish macro events, Crude Oil (Brent) moved a median -1.7% over 5 sessions (38% higher; middle half -5.4% to +2.3%), and -1.7% over 20.
After 565 past bearish macro events, Crude Oil (WTI) moved a median -1.4% over 5 sessions (41% higher; middle half -5.9% to +3.0%), and -0.5% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
