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Critical Minerals Rip Higher on US Inflation Data

The famous Wall Street Bull turned green today as commodities ripped higher on US CPI data surprising the markets.

Key commodities needed for the transition to a green economy were significantly higher on Wednesday as data suggested the high inflation that had created havoc on the global economy had cooled significantly.

CPI data dropped 8.30 am in New York, showing inflation had cooled to as low as 3% (non-core CPI) in June, financial media reported.

As the news broke, key commodities including several critical minerals took off, here are the highlights:

  • Tin, which is needed in a wide variety of renewable technologies, including solar, key electronics and computing power was up as much as 4% to over $US29,000 per ton.
  • Nickel, a key mineral needed for battery production was up 4% and heading toward US$22,000 a ton.
  • Copper was up as much as 2% to around $8,500 per metric ton. 
  • Zinc, a key mineral for batteries, was up around 2.5% to US$2,400 a metric ton. 
  • Silver, a key metal required for renewables, particularly solar power was u around 3%, just shy of US$24 an ounce 

The markets are now hoping for the US Federal Reserve will stop its cycle of rate rises, as inflation falls from around 9% a year ago to around 3% in today’s data.

“There has been significant progress made on the inflation front, and today’s report confirmed that while most of the country is dealing with hotter temperatures outside, inflation is finally cooling,” said George Mateyo, chief investment officer at Key Private Bank told CNBC.

“The Fed will embrace this report as validation that their policies are having the desired effect – inflation has fallen while growth has not yet stalled.”

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