On Tuesday, U.S. CPI data for April showed that soaring energy prices pushed overall inflation to a three-year high, and expectations for a Fed rate hike within the year are heating up. Meanwhile, as hopes for a peace deal waned, the U.S. and Iran once again exchanged harsh words.
The U.S. dollar index rose, hitting a new high for nearly a week, and eventually closed up 0.37% at 98.29; the benchmark 10-year U.S. bond yield closed at 4.457%, and the 2-year U.S. bond yield, which is sensitive to the Fed’s policy rate, closed at 4.002%.
Spot gold once plunged more than 2%, V-shaped rebound in the U.S. trading session, narrowing intraday losses, and finally closed down 0.41% at $4,715.33 per ounce; spot silver closed higher for the sixth consecutive trading day, and finally closed up 0.54% at $86.58 per ounce. Rebounding demand and supply risks pushed LME copper prices above $14,000, approaching record highs.
As the market’s concern about the continuation of the war in Iran intensified, international oil prices continued to rise. wti crude oil was once close to $103, and finally closed up 3.76% at $102.32/barrel; Brent crude oil finally closed up 2.71% at $105.3/barrel.