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 rises amid optimistic Fed minutes
The value of gold on Thursday exceeded key levels amid the dollar’s weakening. The minutes from the latest meeting of the Federal Reserve indicated a growing number of members who support a slower pace of increasing interest rates.
Markets are now assessing the likelihood of a relatively smaller 50 basis point increase in central bank rates. Investing.com predicts that the expected hike should occur in December, which would be nearly 80%.
Markets will be paying attention to November's CPI inflation data, which will be released next month. The level of inflation decline will be evident from these readings.
Nevertheless, a small Fed rate hike will be beneficial to the metals markets going forward. That is because the sharp rise in interest rates has greatly increased the opportunity cost of holding non-interest bearing assets.
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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
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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.