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MARK AUSTIN THOMAS: Commodities have been on something of a wild ride the last couple of months. Marketplace’s Tess Vigeland looks at what’s behind the rollercoaster.
TESS VIGELAND: Investors started flocking to precious metals and other commodities earlier this year as the dollar lost ground.
Copper, platinum, zinc and, of course, gold and silver all set new price records.
But market analyst Jim Wyckoff says investors are now concerned about rising interest rates. They could have a negative effect on economies around the world and that could dampen demand for everything from steel to sugar and silver.
JIM WYCKOFF: It’s not uncommon to see the markets pull back and see a significant downside move, which is what has happened in crude oil just recently and in the gold market the past several weeks. We’ve seen gold back about $100 off of its high.
Potentially good news for anyone in the jewelry industry. But experts say despite the recent downturn, metals are likely to retain their sheen as a hedge against inflation.
I’m Tess Vigeland for Marketplace.
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