- The US national average diesel price hit a record $6.29 a gallon, up nearly 80% year to date, driven by Middle East tensions and tight global refinery capacity.
- The Fed raised rates 25bp to a 3.75%-4% range; Goldman Sachs and Morgan Stanley expect another 25bp hike in October, the ECB has already raised rates, and the BOJ is expected to hike Friday.
- Higher diesel costs pass through transport and supply chains into consumer prices first, making record fuel prices a headwind for gold, bitcoin and technology stocks.
- SPDR Gold Trust physical holdings rose 1.711 tons overnight to 1,051.988 tons, reflecting continued investor demand for gold as a safe-haven asset.
Quotes
“The national average price for a gallon of diesel hit a record $6.29 this week, up nearly 80% year to date, according to TradingView.”
“Higher diesel prices can show up in inflation through business costs first, then potentially affect consumer prices over time depending on pass-through and demand”
“This accumulation of gold by GLD indicates growing investor demand for the precious metal.”