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.
Recession could lead to Fed rate cut in 2023
Bank of America (BofA) expects that 10-year US Treasury yields will fall next year. This is explained by the fact that the Federal Reserve System (Fed) slows down the monetary tightening and lowers interest rates. The Fed takes these steps to stimulate the US economy.
According to Mark Cabana, an expert at BofA, the US economy will enter recession around mid-2023. By the end of the year, this event will push the Fed to lower rates and will send yields, which move inversely to prices, lower across the curve.
The expert says that the predicted a slowdown in the pace of rate hikes will partially reduce the volatility that frustrated investors this year during a sharp fall in stock and bond prices.
Cabana believes that the central bank to raise rates three more times until it reaches a terminal rate of 5.25% next March. According to the economist, there is a possibility that politicians will be cutting rates in December 2023.
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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
Exxon Mobile is criticized for $56 billion profit
White House Supports Alaska Oil Project
Aluminum buyers from Japan agreed to pay extra charges in the first quarter
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.