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On October 16th, gold prices hit a new high of $4,226 in early trading, supported by concerns about trade tensions and market bets that the Federal Reserve will increase monetary easing before the end of the year. So far this week, gold prices have risen by over 5%, and the buying frenzy has also spread to other precious metals. Traders are heavily betting on at least one significant US interest rate cut before the end of the year, and Fed Chairman Powell hinted this week that the central bank will cut rates by another 25 basis points later this month. The ongoing US government shutdown also provided support for gold prices. Furthermore, the so-called "currency devaluation trade" is driving inflows into gold, with investors selling sovereign debt and currencies to hedge against the risks of widening fiscal deficits. Active gold purchases by central banks are a key support. Saad Rahim, chief economist at Trafigura Group, said that the gold rally is "primarily driven by physical buying. If you look at central banks, they are buying heavily."South Koreas chief presidential policy adviser expressed "optimism" when asked about US tariff negotiations.Honda Motor: Will make additional investment in California-based startup Helm.AI.ANZ Bank raised its gold price forecast to $4,400 an ounce by the end of this year, and expects it to peak at nearly $4,600 an ounce by June 2026.On October 16, the World Meteorological Organization (WMO) announced that atmospheric concentrations of carbon dioxide, methane, and nitrous oxide reached record highs in 2024. This phenomenon is attributed to continued human emissions of carbon dioxide and the frequent occurrence of wildfires. This, combined with the reduced absorption of carbon dioxide by carbon sinks such as terrestrial ecosystems and the oceans, could lead to a vicious cycle of climate change. WMO officials stated that the last time such high carbon dioxide concentrations were recorded in Earths history was approximately 3 to 5 million years ago, before the advent of humans.

Oil declines more as recession fears deepen

Haiden Holmes

Jun 23, 2022 11:28


Oil prices fell 2% in early trade on Thursday, extending losses from the previous session, as investors were concerned that aggressive U.S. interest rate hikes may trigger a recession and cut gasoline use.


U.S. West Texas Intermediate (WTI) oil futures declined $2.39, or 2.3%, to $103.80 a barrel at 00:00 GMT. Brent oil prices sank $2.24, or 2.0 percent , to $109.50 a barrel.


On Wednesday, both indexes dropped about 3 percent, reaching their lowest levels since mid-May.


Investors continue to assess the degree to which they should be concerned about the likelihood of a global economic recession as central banks attempt to manage inflation through interest rate rises.


"Oil markets remained under pressure as investors concerned that rising U.S. interest rates will hinder the economic recovery and reduce gasoline demand," said Kazuhiko Saito, head analyst at Fujitomi Securities Co Ltd.


"U.S. and European hedge funds have begun selling their positions ahead of the end of the second quarter, further lowering market sentiment," he continued, predicting that the WTI might go below $100 per barrel before the July 4 holiday in the United States.


Jerome Powell, the chairman of the Federal Reserve, emphasized on Wednesday that the Fed is not aiming to engineer a recession in order to battle inflation, but is fully dedicated to bringing prices under control, even if doing so risks a recession.


In the meanwhile, U.S. President Joe Biden urged Congress to suspend the federal gasoline tax for three months to combat record pump prices and provide American customers with temporary relief this summer.


Sato of Fujitomi stated, "Even if the gasoline tax was suspended, retail prices would remain high, making it hard to increase demand."


The U.S. Energy Information Administration has delayed the release of its weekly oil figures until at least the next week due to system issues. Originally, the figures were scheduled to be disclosed on Thursday.


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