Crypto World
Record U.S. diesel prices complicate bitcoin and gold outlook
U.S. diesel prices have surged to an all‑time high, marking the latest flare‑up in a broader energy shock that is reigniting inflation fears across global markets.
The national average price for a gallon of diesel hit a record $6.29 this week, up nearly 80% year to date, according to TradingView. Bitcoin is down nearly 12% at $76,400 for the year while gold is largely unchanged, having retraced from the record high of $5,600 reached early this year.
Such spikes in pump prices typically feed through to transport costs, supply chains and, ultimately, consumer prices.
“Higher diesel prices can show up in inflation through business costs first, then potentially affect consumer prices over time depending on pass-through and demand,” JPMorgan said in a note Tuesday.
The timing could hardly be worse. Central banks are already on high alert and inclined to hike interest rates, making credit more expensive even though higher rates are unlikely to address the key source of inflation: disruptions to oil supplies from the wars in Iran and Ukraine.
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