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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