Producers of metals and other raw materials fell sharply as traders braced for a shift in Federal Reserve policy, in light of comments from one official.
Federal Reserve Bank of St. Louis President James Bullard said the economy is seeing more inflation than he and his colleagues had expected, and noted that while there is substantial uncertainty about the outlook, it could lead to a rate increase next year. Expectations of a policy shift have driven up the relative value of the dollar, weighing on commodities prices.
The price of gold fell 5.8% this week to $1767 a troy ounce, the largest weekly decline since March 2020, in the depths of the pandemic. Grain futures recouped some of their recent losses as traders anticipated higher orders from China in the wake of the price slide.
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(END) Dow Jones Newswires