Persistent Inflation Reignites Fed Hike Bets, Lifts the Dollar

Investors have started to see more clearly signs that the Federal Reserve (Fed) could be pushed by persistent inflation to resume the cycle of interest rate hikes, contrary to previous expectations of easing.

Effect on Bonds: As government bond yields climb toward multi-year highs, non-interest-bearing assets – like gold and silver – quickly lose their appeal compared to safe cash or bonds.

Dollar Rally: With the hawkish shift in monetary policy, the U.S. dollar index (DXY) has surged, putting extra pressure on commodities priced in greenback.

Source: https://x.com/business/status/2104289992805581284?s=20