Bloomberg News reports for the present week, Jerome Powell takes centerstage for the commodities. The chief of the Federal Reserve is slated to unleash yet another rate hike, and this rate hike could put more pressure on crops, metals, and energy.
It is feared that if there is a stronger anti-inflation measure from the United States and the other central banks, it is likely that it will not just give rise to a squeeze demand but will trigger a rise in the dollar, which is battering the commodity market already. Just ahead of Powell’s rate surge Wednesday, the market found an opening with extreme caution, with gold at a two-year low, metals being steady, and crude paring manifesting loss for three weeks at a stretch.
According to Capital Economics analysts, a bulk rate surge is quite likely at prices in the markets, but it is believed that a lid on the prices could still be there while stating the same in a note.
A lot is happening elsewhere. Leaders in Europe are planning to combat the energy crisis while Germany is mulling nationalization. As far as meat demand is concerned, the United States will be offering the latest insight. Besides, key conferences are scheduled all over copper in Barcelona, the climate in Pittsburg and New York, and gold in Denver. Another aspect that might be in focus is UN General Assembly since geopolitical tensions are everywhere.
Europe’s Concern
As far as the energy sector is concerned, the coming week is slated to be a historic one for Europe, reports Bloomberg News. The fact that Germany seized the Russian oil major’s local unit has triggered speculations that the energy sector in Europe might head for a revamp in the energy market, going ahead with a brand-new period without supplies from Russia.
The consequences of the talks between the three major gas firms will be out soon since the politicians across the continent are preparing for a crisis for their winter supply.
Colorado conference
The gold mining executives, analysts, bankers, and investors are meeting at the annual Denver Gold Forum in Colorado Springs, Colorado, which is scheduled to start this weekend. The 34th annual meeting of the largest and oldest event in the world of the precious metal sector is being held at a crucial time when the forum is wrapping up.
