Page 20 - Bullion World Volume 4 Issue 7 January 2024

Bullion World | Volume 4 | Issue 7 | July 2024

Mr Bart Melek Ms Rhona O’Connell

Coming to Mr Bart, what is the macro view at TD Ms Nicky Shiels - Ms Rhona, what is your view on
securities regarding the fed rate cuts, do you think the demand of central banks buying in the times to
the higher for longer will continue and how will this come?
pair with the gold price? Ms Rhona O’Connell, The short term answer to this
Mr Bart Melek, Regarding the call for the fed which takes us back to Friday which was related to Thursdays
is not speculative anymore. At this point just after the prevailing prices, by the time the states opened the
payrolls we speculate that the cut cycle is set to start sentiment already pervaded the market which resulted
from September onwards which makes it three cuts for in fall which we witnessed. There were also concerns
the year. We see a decline in the fed funds rate to about relating to the central bank activity. If we look at the
250 basis points that will take us into the year 2025. Well international monetary fund’s there are no changes
the USD is still pretty exceptional and we know there are recorded for several months but then there is a sudden
talks about the dollar on the brink of a collapse, however change within a given month which is considered as a
this can be a lower grind rather than a collapse, over pattern. The large acquisitions by the official sector can
the next decade. We can see an erosion of purchasing be seen as a hint given to the rest of us which shows the
power but it cannot be steep collapse. kind of political instability and banking risks.

Ms Nicky Shiels – Mr Nicholas, can you tell us about
the flows in Australia especially the secondary
scrap and producer selling?
Mr Nicholas Frappell, Global Head of Institutional
Markets, ABC Refinery – In regards to producer selling
and hedging which is still out of fashion in Australia, one
important thing which we noticed during the run-up of
gold prices we saw very few secondary material was
coming out of the Asian markets. Coming to the USD
exceptionalism which we are going with accordance to
we can see other central banks pivot and cut rates faster
than the fed to position themselves in a better way.

Mr Nicholas Frappell

20