The persistant notion that "the FED ain't done yet" is depressing commodities...
Because, the notion of higher rates improves prospects for the dollar...and the dollars "return." towit: the interest paid on cash and cash equivalents.
Commodities of course have no "return" per se...
But for rates to go up...the debt and deficits have to stay high...to protect the dollar as a viable "investment" for foreigners. So there is a Yin Yang here that can't be "explained" on a day to day basis...
Just ask: "Why is the FED REALLY raising rates....?" And the dollar and the bond don't look so good. Because the answer is high debt and deficits...not excessive "growth."
