Today all eyes were on the new Federal Reserve Chairman Jerome Powell, who was testifying for the first time since taking charge. Markets were watching to see if Powell would suggest if there will be more rate hikes than the expected three this year.
Investors are still worried about the stock market. It’s quite understandable, given the recent correction, but it draws their attention away from the really important developments. Let’s analyze the hidden threats and consider how they could affect the gold prices.
The crypto carnage that started at the end of last year may have ended at the start of February. In recent weeks, prices have stabilized across the board as fears over the clampdown on crypto exchanges abated.
From glut to shortages. During downturns in major commodity markets, there is a tendency to get all doomy and gloomy about the future and get locked into a lower than longer mentality. That kind of short-term thinking has engineered a major bottom in petroleum, and now that type of thinking may have an on impact natural gas.
Even as crude oil supply may rebound this week the tightening global oil supply is becoming more apparent. Global demand fed by low prices and OPEC compliance has seen the global overhang of oil practically disappear. We saw more support from geopolitical issues as Libya declared a force majeure after an attack at its southeastern oil field Al-Fil.