Pepperstone, an Australian broker, says gold has the potential to hit $1,800 in December. Pepperstone’s head of research, Chris Weston, says it will be a “very lively” December. “It’s been a frustrating year for gold investors, and there has been an opportunity cost with holding longs, especially as cash has emerged as a risk-free investment class.” In other news, experts are predicting a shift down in interest rate hikes next month. However, they say now is not the time to pause.
Kitco News/Anna Golubova
It’s going to be a ‘lively December’ for gold price – Pepperstone
Gold is looking at potentially taking out $1,800 and having a great 2023, according to Australian Pepperstone.
Gold finally found momentum after seeing seven months of consecutive losses and registering a bottom near $1,620 an ounce.
On Tuesday, December gold futures reacted positively to the slower U.S. Producer Price Index and renewed geopolitical tensions after reports that a Russian missile crossed over to Poland and killed two people.
“We’re seeing signs of consolidation before a potential test of $1,800/04 and beyond. Happy to hold a positive bias but would reconsider through $1739 and $1710,” said Pepperstone’s head of research Chris Weston. “It’s been a frustrating year for gold investors, and there has been an opportunity cost with holding longs, especially as cash has emerged as a risk-free investment class.”
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Fox Business/Megan Henney
Is the Fed preparing to pivot on interest rate hikes? Not so fast, policymakers say
Federal Reserve policymakers poured cold water on investor hopes for a pause in interest rate hikes as they stress the need to crush runaway inflation and warn of economic pain to come.
In speeches this week, central bank officials reiterated their resolve to sufficiently tighten monetary policy, hammering home their commitment to corralling stubbornly high consumer prices.
San Francisco Fed President Mary Daly said Wednesday in an interview with CNBC that she sees interest rates peaking at a range of 4.75% to 5.25%. With the benchmark federal funds rate now at a range of 3.75% to 4% — already well into restrictive territory — that would imply another 125 basis point increase.
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Business Insider/Theron Mohamed
US inflation has peaked, a recession is coming, and the FTX fiasco has shaken faith in markets, Ken Griffin says. Here are the Citadel CEO’s 10 best quotes from a new interview.
US inflation has likely peaked, but the Federal Reserve should keep raising interest rates to avoid more economic pain in the future, Ken Griffin said at the 2022 Bloomberg New Economy Forum this week.
The billionaire investor and Citadel CEO also predicted an unemployment spike and recession next year, warned the implosion of Sam Bankman-Fried’s FTX exchange could spark a crisis of faith in financial markets, and cautioned that cutting off China’s access to US microchips could end in disaster.
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