Gold and oil prices rise after Powell’s speech
2023.02.08 08:11
Gold and oil prices rise after Powell’s speech
Oil
China may be the exception to all of this because it has not required excessive monetary tightening; rather, the growth slowdown is almost certainly to blame. In point of fact, it is said that the transition from living without Covid to living with it is going very well. It might boost the economy sooner and more than expected, which would raise growth estimates for 2023.
That could help the global economy get through a tough time, but it could also make inflation worse because there would be a much higher demand for commodities like On the basis of these improved forecasts, oil prices have been rising in recent days, but they are still roughly in the middle of the range they have been in since early December.
Gold
Even though it was relatively mild in comparison to the declines that occurred toward the end of the previous week, Fed Chair Powell’s reassuring remarks gave gold some relief overnight. Since the beginning of December, the yellow metal has been on a phenomenal run, and a correction was becoming increasingly likely.
Even though traders have appreciated Powell’s consistent stance, it might not be enough to save gold, and a deeper correction might happen. It is currently receiving some support around $1,860, but it may receive more substantial support between $1,820 and $1,830.
