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.
Gold comes to the forefront as a protective asset in crisis
At the present time, the cost of gold is firmly entrenched at $1,900 dollars per ounce. That mark is already very close to a possible maximum predicted by analysts. That kind of dynamics is driven by noticeable dollar weakening and decrease in the yields of the U.S. government bonds.
Investors, who develop a long-term plan, definitely buy gold to their diversified portfolio, because, as we know, the precious metal is now considered as a profitable asset. Its value is primarily due to the fact that in times of recession, traders resort to buying a heaven-asset, and gold is precisely remarkable for its protective function on the market.
Today it’s evident that the price of gold shows less volatility compared to cryptocurrency, commodity or major stock indices. Purchasing precious metal futures carries less risk than investing in the Nasdaq-100, Dow Jones, S&P-500, DAX or bitcoin, when you consider the volatility of all time.
Even despite the gradual recovery of the markets, gold is still holding its ground, showing an increase since the beginning of this year.
Today, gold is in a winning position due to lower interest rate worries and a weaker dollar.
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Energy and Precious Metals Market events for February 2-3, 2023
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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.