Ongoing concern about the Turkish economy and its potential spillover effects to Europe and the global economy sent many markets lower this week. Turkey’s currency, the lira, fell to new all-time lows on Monday, driven lower by internal economic woes and a worsening trade war with the White House. As the lira has collapsed it has been dragging the euro lower on fears that European banks are heavily invested in Turkey. As those currencies fell, the U.S. dollar exploded to a one-year high. The rising dollar and economic concerns put pressure on commodities worldwide, especially gold and silver, which fell near two-year lows at $1,161 and $14.31 per ounce, respectively. Metals investors were confused by the drop, since gold and silver historically benefit from strife and uncertainty. Drought burns farmers globally As summer comes to an end, farmers around the world are desperate for rain, with many having lost crops and livestock to dry conditions. Australia is suffering from its worst drought in memory, which has devastated that country’s beef and wheat production. Similarly, European wheat, corn and soybeans in Missouri, and even cotton in Texas are all suffering from hot and dry conditions. (Story continued below…)
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