As inflation continues to ravage through the world and everybody sees it but the Fed, investors are still betting heavily on these two commodities as they tend to be the best inflation hedges.
Moreover, gold and silver surged yesterday in what looks like a short-squeeze move. The rally was really violent and caught many traders off guard. Silver rose toward 27 USD, while gold nearly touched the 1,800 USD level.
Monday's US manufacturing fell short of expectations and dropped to 60.7 from 64.7 in April, while the prices paid subindex stayed near record highs. Therefore, it looks like stagflation is coming - weaker growth and higher prices.
Elsewhere, the Nasdaq 100 index is down four days in a row, which is really unusual. Other indices are holding strong for now.
In the FX, the USD is erasing yesterday's losses, with the EURUSD pair attacking the 1.20 barrier to the downside again.