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Carbon price to the moon?

How have commodities like gold, silver, and oil performed against the major indices?

In this chart, you can see the year-to-date returns of major commodities and the major indices.

As you can see, so far this is not a good year for gold and silver bugs. Among the indices, the S&P 500 stands above them all. Tech stocks gave a return of 15%. With official inflation numbers just over 5%, not a bad gain.

But what stands out, EU Emission Allowance (EUA) futures are going to the moon. Comparing YTD, the price rose from around €29/ton ($34.12) to around €55/ton ($64.86).

According to analysts, the price for carbon is expected to rise even further by 2030.

It remains exciting how gold and silver will behave until the end of the year. So far, no clear direction can be identified. On the one hand, the delta variant and inflation fear on the other hand positive employment figures and tapering rumors.

It remains to be seen whether the Fed will maintain its current policy or change direction and how the precious metals will respond.

1 USD = 0.848 EUR

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