TD on Gold and the G7 Ban
(regarding this ICYMI:
- The G-7 ban on new Russian gold imports is unlikely to impact gold trading given that the LBMA ban has already cut off new Russian production from major G-markets. -7. In turn, the price action reverses to reflect the minor impact on gold. However, gold prices are also being pulled higher as growing recession risks drive inflows into the yellow metal.
- Gold bugs sniffing a potential stagflationary outcome associated with weaker growth but persistent inflation should also consider that central banks, facing a credibility crisis, could also continue to raise rates for longer than they want. would otherwise. In this scenario, the pricing of a Fed pivot would be less associated with recession probabilities than in previous episodes.
- In the near term, the continued missteps of CTA trend followers reflect price moving into the yellow metal’s range as macro pressures intensify.
Gold chart update:
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