Crude Oil Inventory Surprises

Crude oil inventory surprisingly fell last week. The inventory fell by about 2.1 million barrels, whereas previously it had been expected to rise. Gasoline inventory fell by 708,000 barrels.

So far, it is not clear exactly where the economy is headed at the moment. The retail sales figures released yesterday suggest a strong economy. Nevertheless, it is precisely here that attention should be paid. Many now see inflation as a major risk of losing purchasing power over the long term. Thus, at the moment purchases are made that were perhaps only intended for the future for fear of not being able to afford the products in the future.

Gold on the Rise

As inflation became more and more of a concern, the price of gold also picked up again. After sell-offs yesterday, the gold price could rise again today.

At the moment, the gold price is at $1,864 per ounce. The silver price is at the moment at $25.17 per ounce.

Given the current situation, it looks like the main drivers for higher gold and silver prices are given. The interest rate policy will not change for the time being, which means that real interest rates will remain negative. In addition, while the start of the tapering of the QE program has begun, another trillion-dollar package is just around the corner in the form of the infrastructure package. This speaks for more debt and deficits.

Even if many don’t like to hear it, it doesn’t look good because of future purchasing power. Whether in the U.S. or Europe, money printing continues relentlessly. The question that remains is, where and how will this all end?

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