Silver Rising Amidst Expectations Of A Dovish Fed, Recession Fears Keeping Brent Crude Oil Low, Corn Futures

Summary:

• Fed members were growing anxious around rate hikes continuing at the current rate.
• Investors are becoming more concerned about a worsening economic forecast.
• Corn has gained 14.98% in 2022.

Silver futures rising

The price of spot silver was $19.2 per ounce, which is still near to the two-week high of $19.4 per ounce reached on October 21 amid expectations that the Federal Reserve would pause in raising interest rates. According to reports, Fed members were growing more anxious that, should rate hikes continue at the current rate, the central bank might be unduly aggressive, halting the dollar's rally and boosting demand for gold. However, the central bank is anticipated to increase its funds rate by 75 basis points for the fourth time in a row next week. Even though bullion investments are frequently employed as an inflation hedge, holding non-interest-bearing assets becomes more costly as interest rates rise.

✕ Silver Dec ‘22 Futures Price Chart

Brent Crude Oil remains low amidst recession fears

On Monday, concerns over a projected worldwide recession-driven decline in demand kept the price of Brent crude futures below the $92 per barrel barrier. Investors are becoming more concerned about a worsening economic forecast in the face of escalating macro challenges, such as high inflation and tighter financial conditions. Furthermore, according to Chinese customs data, demand from the biggest crude importer in the world remained muted in September as a result of ongoing coronavirus-related limitations and export restrictions on fuel. Even still, amid growing rumors that the oil cartel will further interfere in markets to support prices, OPEC and its allies, including Russia, decided to cut production by 2 million barrels per day in November, the largest reduction since the start of the crisis. Concerns about a shortage of supplies were also heightened by a pending ban on Russian crude by the European Union.

✕ Brent Crude Oil Futures Price Chart

Corn futures

Trading on a contract for difference (CFD) that reflects the benchmark market for this commodity shows that corn has gained 88.85 USd/BU or 14.98% since the start of 2022.

✕ Corn Futures Price Chart

Sources: tradingeconomics.com, finance.yahoo.com