April 21, 2022

Inflation, Central Banks Policies, and the Macroeconomic Outlook

James Steel, HSBC Securities (USA) Inc.; Rhona O'Connell, StoneX Financial Ltd.; Suki Cooper; Standard Chartered Bank.

In today’s webinar, James Steel (Chief Precious Metals Analyst, HSBC Securities (USA) Inc), Rhona O’Connell (Head of Market Analysis, EMEA and Asia Regions, StoneX Financial Ltd), and Suki Cooper (Executive Director, Precious Metals Research, Standard Chartered) discussed how they see inflation, central banks policies and other factors affecting the global macroeconomic outlook and, in turn, precious metals price direction.

James focused on the impact of geopolitical and trade relations on the gold market, commenting that geopolitics is not generally a prime driver of gold prices. He noted that this had changed since the invasion of Ukraine, adding that “the impact of geopolitics has been elevated to front and centre in driving the price of gold.”

Suki noted that there is a significant geopolitical risk premium currently, attributing it to the fact that “gold prices are being pulled and pushed by a number of different dynamics.”.

Rhona focused on inflationary trends, looking at the unemployment and inflation rates, stating that “their correlations with gold over short periods has become much stronger, particularly over the past couple of years.”

Suki rounded off the discussion by examining the performance of gold during inverted yield curves and the expectations for 2022, noting that global growth is vulnerable particularly if inflation becomes more of a problem.

Watch the webinar now to find out more about ETF holdings, jewellery and the World Silver Survey, released yesterday by the Silver Institute.

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