Page 34 - Bullion World Volume 3 Issue 10 October 2023
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Bullion World | Volume 3 | Issue 10 | October 2023

           Unchartered Territory for Global Markets


            Puts Precious Metals Back on the Radar



                               Ms Nicky Shiels, Head of Metals Strategy, MKS PAMP



           If 2022 was the year in which the Fed   a very contained slumber with tight
           was proved wrong by inflation trends   price ranges as there is simply very
           (recall they labeled it “transitory”   limited macro fear in the Western
           for months before responding with   World, while China has not fully come
           a series of jumbo-sized rate hikes),   back to market.
           then 2023 has been the year in which
           the markets expectations around both  Gold, an asset that sometimes
           the US and Chinese economy was    internalizes the unqualifiable other
           proven wrong. There was no stellar   asset classes cannot, hit a peak of
           Chinese reopening, and the US     $2063 in Q1’23, which has created
           economy has beat any expectations   a technical triple top the market
           of either a slow or hard landing, in the   has come to respect. It has ping
           face of 550bp of rate increases as   ponged broadly between $1900/oz
           well as a serious (albeit short-lived)   and $2000/oz, before breaking down
           banking crisis in March 2023. So   below the $1900 floor following a         Ms Nicky Shiels
           Precious Metals got its (short-lived)   Fed decision which indicated interest
           opportunity to show up as a real   rates will be “higher for longer”.
           safehaven when the US banking     Given the Feds fight against inflation
           crisis - a true US$-negative catalyst   and the series of almost back-to-
           jumpstarted markets. However, since   back rate hikes for 18months now,
           then, the sector has been forced into   10 year real rates in the US have














































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