Gold prices briefly dropped below $1,700 on Friday. It then closed the day slightly lower and recorded its fifth consecutive weekly loss. However, commodity strategists at UBS expect further declines in gold by the end of the year.
“Gold prices will drop to $1,600 by the end of the year”
cryptocoin.comAs you follow, gold prices reached the $1,700 limit. A team of commodity strategists at UBS lowered its gold forecast on Friday. Strategists now expect the yellow metal to drop as low as $1,600 by the end of 2022, before showing a slight rebound in 2023. In a note to customers, the UBS precious metals team recommends:
We think it’s too early to buy gold at current levels. We still recommend keeping existing positions. We see more positive opportunities in 2023.
“Low gold prices and these increase the risk of a recession”
In addition, strategists cut their platinum forecast, which has fallen sharply in the last two months, to its weakest level since 2018. For this, they make the following statement:
Lower gold prices and higher energy prices, as well as a potential cut in Russia’s gas exports to Europe, raise the risk of Europe falling into a recession. This hurts platinum demand. After all, it accounts for around 20% of European platinum demand.
“US economy continued to grow in June”
US consumers increased their retail spending by 1% in June in light of tougher inflation and uncertain economic forecasts. But some of the growth may reflect higher gasoline and food prices. Economists polled by The Wall Street Journal had predicted a 0.9% increase in retail sales last month. Bill Adams, chief economist at Comerica Bank in Dallas, comments:
A solid increase in retail sales is further proof that the US economy continued to grow in June. At the same time, spending in categories other than gas and groceries increased faster than inflation.
Bill Adams: Risk of recession is roughly like flipping a coin
The inflation expectations indicator in the University of Michigan’s consumer sentiment survey for the next year fell to 5.2% from 5.3% in July. Industrial production in the USA decreased by 0.2% compared to the previous month. National average gasoline prices came back in the first half of July. That’s why, according to Bill Adams, it’s possible for sentiment to improve and recession fears to ease. However, the economist adds to his assessment:
Even so, the US economy is nearing a standstill. One more big shock will be enough to put him in recession. This shock could come from an energy crisis that could sharply raise US natural gas prices in Europe during the winter heating season, or from China’s weakening economy. Faced with these headwinds, the risk of recession is roughly like a coin flip between today and the end of 2023.
Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram and YouTube join our channel!
Disclaimer: The articles and articles on Kriptokoin.com do not constitute investment advice. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. For this reason, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, assets or services in this article.
Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.