According to strategists at ANZ Bank, gold prices tend to remain under downside pressure ahead of an economic downturn. However, recessions usually move gold prices up and make gold perform inversely to other markets, such as the stock market.
Oil is about to end the week on the rise after a series of positive forecasts regarding fuel demand. On Tuesday, OPEC stuck to its projections for global oil demand growth of 2.55 million bpd this year and 2.25 million bpd next.
On Friday, gold prices began to stabilize. Previously, the yellow metal was losing ground significantly amid growing recession risks and expectations of higher interest rate peaks by some leading central banks.
On Wednesday, the dollar rate changed after the speech of the head of the Fed Jerome Powell. According to the Fed’s forecasts, in 2023, the borrowing costs will increase at least by 75 basis points.
Last month, Japan’s trade balance deficit decreased less than it was expected. The impact of a weaker yen has extended to the country’s imports. In November, the actual deficit was 2.03 trillion yen.
At the moment, there are significant contradictions in the assessment of the U.S. Federal Reserve (Fed) actions. On the one hand, Fed’s Chair Jerome Powell is talking about further raising interest rates and fighting inflation.
The Swiss National Bank raised its policy rate by 50 basis points on Thursday. It is the third increase this year in terms of curbing inflation. Interest rates in Switzerland are at their highest level since the global financial crisis 14 years ago.
As expected, the European Central Bank is going to increase its rates once again on Thursday. This would become the fourth successive hike, although in December a smaller increase is suggested to be delivered.
Australia’s officials decided to cap its domestic gas price, even with energy exporters speaking out against the new law. Such measures are aimed at bringing down rising power bills.
According to economist David Rosenberg, consumer debt payments in Canada are much higher today than in 1990. Interest rates were perceptibly higher at that time, a signal that the debt burden in the economy was extremely high.
