Commodities Today - Gold Prices Fall As U.S Yields Rise, Wheat Prices Facing Pressure, Palladium Prices In Recovery| FXMAG.COM

Summary:

Gold versus U.S Yields.
Palladium Prices showing signs of recovery.
Wheat prices affected by Russia’s possible taxation of the commodity.

Gold Futures Price Falls As the opportunity cost for holding rises.

The price of gold has fallen amidst the Federal Reserve raising yields and therefore putting pressure on zero-yield bullion. The market is concerned at how big the next 2 interest rate hikes could be, the Fed are putting their best foot forward as they attempt to fight the increasing inflation and increasing labour costs. As the short term U.S interest yields increase, the opportunity cost for holding gold increases too, driving the price down with the falling demand.

Commodities Today - Gold Prices Fall As U.S Yields Rise, Wheat Prices Facing Pressure, Palladium Prices In Recovery - 1 Gold Futures Price Chart

Palladium prices are back on the rise.

Over the past week the price of palladium has seen an overall positive price trend, this comes with the problems in supply chains around the world and the Russia-Ukraine war. Russia is one of the biggest producers and exporters in the world, with South Africa, Russia produces and exports around 70% of the world's palladium. The sanctions on Russia are putting a dent in supply, in addition, the lockdowns in China causing concerns around demand.

Commodities Today - Gold Prices Fall As U.S Yields Rise, Wheat Prices Facing Pressure, Palladium Prices In Recovery - 2

Palladium Futures Price Chart

Wheat prices facing pressure.

Wheat Future prices down around 1% today. The price has been stable over the past week apart from the sharp drop on Sunday amidst concerns around Russia imposing taxes on its wheat exports between now and July 2022. There are concerns around demand and supply with Wheat due to the war in the Ukraine and concerns around supply chains.