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Gold prices are being propelled towards record highs by three key factors: economic uncertainty, falling bond yields, and a weaker US dollar. This year, central bank buying has further fuelled the rally. The flight to safety among investors has also contributed to increased demand for gold. Other precious metals, such as silver, have rallied even more recently. Falling bond yields, a weaker US dollar, and other signs of a softening…
The US Fed hiked rates again on Wednesday, but opened the door to a hold, helping Copper prices, as markets digest prospect of economic slowdown
The commodity halted its recent relief-rally with its first losing week since the failure of the Silicon Valley Bank and the ensuing banking turmoil, breaching key technical levels
China’s recovery maintains its momentum according to the latest data from earlier in the week, but oil prices slide as markets digest persistent inflation, prospects of recession and monetary policy outlook
The US Energy Information Administration has raised its forecasts for 2023 and 2024. It expects Brent to average $85.01/barrel in 2023 and $81.21/barrel for 2025. These are increases in forecast of 2.5% and 5% respectively. Expectation for West Texas Intermediate are similar.
Gold has breached the psychological $2,000 level and has an underlying positive momentum. The precious metal was up over 7% in March with its all-time high of 2,074 now in sight. It’s appreciated over 25% since its November 2021 low.
The commodity stays on the front foot after Monday’s jump, which was sparked by the surprise oil production cuts announced on Sunday by a series of OPEC+ countries
The gold daily chart has a strong inverse correlation to the USDOLLAR. The correlation coefficient between the two is a hardy -93%. I.e., gold is benefitting as the greenback comes under pressure.
Oil jumped after Saudi Arabia and other oil producing countries, in a surprise move, announced production cuts in excess of one million barrels/day
The pair slides after factory activity in China eased and heads towards the conclusion of a mixed month, awaiting today’s UC PCE inflation update
The commodity runs its second positive week, rebounding from its recent plunge as sentiment improves, but markets now brace for Friday’s US PCE inflation update
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