Gold and silver rallied to new five month highs as Trump stated he would prefer the Federal Reserve keep interest rates low and left open the possibility of renominating Federal Reserve Chair Janet Yellen once her tenure is over next year.

Virtually all commodity and currency markets shot upward this week as President Donald Trump stated on Wednesday that the U.S. dollar was “getting too strong.”

His favoring of a weak U.S. currency and lower interest rates should be bullish for U.S. exports and domestically produced commodities as it makes our goods cheaper to those who will be paying with less valuable dollars.

The expectations for a weaker dollar augmented a rally in grain markets already buoyed this week by Chinese demand and concerns that Midwest farmers may have their planting delayed by too-wet fields.

Meanwhile, if Trump is successful in making the U.S. dollar weaker, foreign goods will be more expensive, a factor that could help support his efforts to establish more balanced levels of trade between the U.S. and the rest of the world.

Oil market tightening