Gold at Crossroads and the Crude Oil-Soybean Oil Nexus

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Gold at Crossroads and the Nexus Between Crude Oil and Vegetable Oils

By Blu Putnam, Chief Economist & Erik Norland, Senior Economist, CME Group

Investors Conflicted Over Gold’s Direction

  • Data indicates two opposing investor sentiments in gold.
  • Potential for inflation to head higher could be supportive.
  • Rising inflation expectations reflect economic optimism.
  • Gold faces headwinds via rising competition from bitcoin.
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Crude Oil Takes the Cue From Vegetable Oils

  • For 16 years, soybean oil has led crude oil through price peaks and troughs.
  • Vegetable oil’s link to crude oil market could be through biofuels.
  • How will current strong rally in soybean oil market impact crude oil?
  • South American drought, concerns over US crop weather supporting soybean oil.
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