Demand for gold surged to an 11-year high last year. This is due to large-scale purchases on the back of high activity by retail investors and a slowdown of ETF outflows.
Erste Group: negative real yields support gold
Erste Group Research economists report a rise in gold prices due to negative real yields.
According to experts, an increase in Fed rates has no influence on real yields, which remains at a negative area in the first quarter of 2023. This contributes to the rise in the price of gold. The continuation of the Fed's rate hike cycle and the expected decline in the U.S. inflation rate in the first quarter have a positive effect on real yields, but it will remain in the negative area. Gold will have very strong support until the real yield situation changes.
Experts believe that gold flows as a shelter will increase because of the expected slowdown in global economic growth and lower corporate earnings growth.
According to economists' expectations, prices will rise to about $1,890 in the first quarter of 2023.
Recommended
Energy and Precious Metals Market events for February 2-3, 2023
Last year recorded an increased demand for gold up to the levels of 2011
Commerzbank: gold will continue to rise with ETF investors’ increasing interest in the metal
IMF increased forecast for world economy for the first time in a year
Gold comes to the forefront as a protective asset in crisis
Latest news
Last year recorded an increased demand for gold up to the levels of 2011
1 February
Exxon Mobile is criticized for $56 billion profit
1 February
The White House expressed a negative assessment of the record profit of Exxon Mobile in 2022. The company earned $56 billion, and it’s a maximum for both itself and the whole oil industry of Western countries.
White House Supports Alaska Oil Project
1 February
The US Interior Department’s Bureau of Land Management supports an accelerated plan of oil production. It includes 3 new wells across the Willow site in the Petroleum Reserve-Alaska, instead of having 5 wells predetermined earlier.
Energy and Precious Metals Market events for February 2-3, 2023
2 February
On February 2, the focus is on natural gas reserves in the United States. On February 3, data on oil rigs from Baker Hughes and speculative positions on oil and gas, gold, silver, aluminum and copper are on the agenda.
Aluminum buyers from Japan agreed to pay extra charges in the first quarter
1 February
Japan was buying aluminum at a surcharge. Shipments from January to March were at $85-86 per ton, which is 13-14% less than in the previous quarter. Resources report weak demand and strong reserves of aluminum.