Fed Liquidity Injection Sparks Commodity Rally as Gold Hits $4,533, Silver $79
The Federal Reserve's latest $2.5 billion overnight repo operation signals persistent liquidity needs in the banking system, despite surface-level market stability. This brings 2024's total injections to over $120 billion—a quiet but telling support mechanism for financial institutions.
Precious metals led the charge, with gold surging to a record $4,533/oz and silver jumping to $79 in its strongest rally in years. The MOVE extends beyond safe-haven assets: copper, platinum, palladium, and oil are rising in unison—a rare convergence that historically precedes economic inflection points.
Cryptocurrencies notably lagged the commodity surge, with Bitcoin failing to mirror gold's breakout. The divergence highlights how traditional inflation hedges are absorbing capital flows while digital assets await clearer macroeconomic catalysts.
