Interest Rate Rout and Surging Energy Prices Pressure Metals, Epstein Says
Key Takeaways
- •Rising interest rates, geopolitical tensions and inflation concerns are weighing on metals such as gold and silver.
- •Epstein said gold is facing headwinds from a stronger dollar and higher bond yields.
- •Oil prices are rising on supply uncertainty, adding to broader market volatility.
- •September is often a weak month for stock indices, which may complicate trading conditions.
- •Upcoming ADP employment data and U.S. factory orders could help shape expectations for Federal Reserve policy.
Interest Rate Rout and Surging Energy Prices Pressure Metals
Ira Epstein
Ira Epstein says the metal markets are facing a turbulent backdrop as rising interest rates and geopolitical tensions between Iran and the U.S. weigh on commodities such as gold and silver.
He said that despite the ongoing conflict and inflation concerns, it is not an opportune time to be bullish on gold. In his view, gold is struggling against a stronger dollar and higher bond yields, two factors that can make non-yielding assets less attractive to some market participants.
Epstein also pointed to soaring oil prices, which he said are being driven by supply uncertainties. He added that September is often a difficult month for stock indices, making trading conditions more complicated at a time when markets are already reacting to energy, rates and geopolitical headlines.
In addition, he noted the resilience of grain markets and highlighted upcoming economic indicators, including ADP employment numbers and U.S. factory orders, which could affect Federal Reserve rate decisions. With rate expectations and inflation readings still central to market pricing, those reports may help shape the tone across commodities and broader financial markets.
About the author
Ira Epstein
IraEpstein.com
LINN & Associates
Over the past 35 years, Ira Epstein has developed a reputation for providing clients with easy-to-use technology and teaching old-fashioned trading know-how. A number of the firm's brokers have more than 30 years of trading experience. No matter how technology changes the methods of entering orders, there is no replacement for having "been there and done that before." It is the blend of services that brings things together.
Whether it is education, market information or trading platforms, the company says it provides solutions.
Ira began in the futures markets in 1969. Over the years, he worked his way up from a "floor runner" to a Floor Trader. In the mid-1970s, he shifted within the industry to develop both retail and commercial clientele. His customer base grew to the point that in 1984 he founded "Ira Epstein & Company," a trading firm specializing in retail, commercial and self-directed discount futures trading.
Along the way, Ira became a leader in trading technology out of necessity, as small-lot trade volume increased. He was among the first to embrace the Internet, which has changed both the way information is delivered and how trading takes place today.
One of the ways Ira, along with his brokers, showcases their work is through e-mails of market information and Ira's "Futures Videos," which can be viewed on the website, through Market Center, Linn-IraChart Software and on YouTube.
IraEpstein.com
