Global asset rally sparks inflation concerns

The recent surge in various asset classes, often referred to as the “everything rally,” has sparked concerns about a potential resurgence of global inflation.

Gold futures for June delivery settled at $2315.0 per ounce on Wednesday, marking a 1.5% increase, or $33.2, from the preceding day, according to data from the New York Mercantile Exchange. Following an initial breakthrough above $2,100 on March 4, the price of gold futures for June delivery exceeded the $2,300 threshold in just one month.

Global oil prices have been on an upward trend, propelled by escalating geopolitical tensions, notably in the Middle East. On Wednesday, Brent crude futures for June delivery experienced a 0.48% climb, or $0.43, reaching $89.35 per barrel, marking its highest level since October of the previous year. Furthermore, prices of industrial metals such as copper and aluminum registered significant gains, with respective increases of 3.0% and 2.1% compared to the previous trading session, reaching unprecedented heights. In equity markets, the U.S. Standard & Poor’s 500 index surpassed the 5,000 mark for the first time this year, marking a 9.9% uptick since the beginning of the year. Similarly, the leading cryptocurrency, Bitcoin, surged by 62.9% during the same period.


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