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Is the US interest rate hike good or bad for commodities?
There is no absolute answer to whether the US interest rate hike is good or bad for commodities. The impact of raising interest rates on commodity markets is complicated, and different commodities may have different reactions. Generally speaking, raising interest rates will have a negative impact on commodity prices, because high interest rates may reduce the purchasing power of enterprises and consumers and reduce the demand for commodities.

Specifically, the interest rate hike in the United States may have a negative impact on commodity markets such as metals, energy and agricultural products. Taking metal commodities as an example, raising interest rates may lead to a decline in the prices of metals such as steel, copper and aluminum, because the demand for these metals mainly comes from industries such as manufacturing and infrastructure construction. For these industries, raising interest rates will increase capital pressure, thus reducing the demand for raw materials. Energy markets such as oil and natural gas may be more affected. Raising interest rates in the United States may lead to a decline in international oil prices, because high interest rates may reduce the purchasing power of enterprises and consumers and reduce the demand for oil. In addition, raising interest rates will lead to the appreciation of the dollar, which will make the price of goods denominated in dollars fall.

It should be noted that in the actual market, the impact of US interest rate hikes on commodities is not necessarily negative. Raising interest rates may be to cope with inflation, but the demand for commodities may not necessarily decline, and the economy may still maintain a high growth momentum, thus increasing the demand and price of commodities. Raising interest rates may mean stable economic growth and benefit the commodity market. In the face of the US interest rate hike, investors should choose appropriate investment strategies according to their own investment objectives and risk tolerance, so as to reduce the potential risks caused by interest rate hikes and achieve better return on investment. Investors can consider choosing relatively stable commodities, such as gold and silver. These commodities are usually safe-haven assets, which can resist the impact of economic recession and inflation. Secondly, investors can also achieve hedging and risk hedging by purchasing financial derivatives such as commodity futures, so as to reduce the investment risk brought by the US interest rate hike.