- AustraliaNorth AmericaWorld
Investing News NetworkYour trusted source for investing success
- Lithium Outlook
- Oil and Gas Outlook
- Gold Outlook Report
- Uranium Outlook
- Rare Earths Outlook
- All Outlook Reports
- Top Generative AI Stocks
- Top EV Stocks
- Biggest AI Companies
- Biggest Blockchain Stocks
- Biggest Cryptocurrency-mining Stocks
- Biggest Cybersecurity Companies
- Biggest Robotics Companies
- Biggest Social Media Companies
- Biggest Technology ETFs
- Artificial Intellgience ETFs
- Robotics ETFs
- Canadian Cryptocurrency ETFs
- Artificial Intelligence Outlook
- EV Outlook
- Cleantech Outlook
- Crypto Outlook
- Tech Outlook
- All Market Outlook Reports
- Cannabis Weekly Round-Up
- Top Alzheimer's Treatment Stocks
- Top Biotech Stocks
- Top Plant-based Food Stocks
- Biggest Cannabis Stocks
- Biggest Pharma Stocks
- Longevity Stocks to Watch
- Psychedelics Stocks to Watch
- Top Cobalt Stocks
- Small Biotech ETFs to Watch
- Top Life Science ETFs
- Biggest Pharmaceutical ETFs
- Life Science Outlook
- Biotech Outlook
- Cannabis Outlook
- Pharma Outlook
- Psychedelics Outlook
- All Market Outlook Reports
Top Stories This Week: Gold Steady, Powell Hawkish; What's Going on With Oil Prices?
US Federal Reserve Chair Jerome Powell remains hawkish ahead of the central bank's September meeting; meanwhile, expert Eric Nuttall shared the bull case for oil.
Top Stories This Week: Gold Steady, Powell Hawkish; What's Going on With Oil Prices?youtu.be
The gold price had ups and downs this week, but traded within a fairly short range.
It rose to just under US$1,725 per ounce on Monday (September 5) and Thursday (September 8), then fell to around US$1,693 on Tuesday (September 6). It was at about US$1,715 by Friday's (September 9) close.
Gold had summer hot streaks in 2019 and 2020, but it's no secret that the season tends to be slow. This year gold fell about 6 percent over July and August, worse than last year's fairly flat performance.
For now, it's uncertain if the fall will bring a breakout for gold. While many experts remain optimistic, US Federal Reserve Chair Jerome Powell is maintaining a hawkish stance that's putting pressure on the metal.
This week, in his last publicly scheduled appearance before September's Fed meeting, Powell said the central bank is "strongly committed" to fighting inflation.
"I can assure you that my colleagues and I are strongly committed to this project and we will keep at it until the job is done" — Jerome Powell, US Federal Reserve
His comments have sparked broader expectations of a 75 basis point hike at the upcoming meeting.
Expert shares bull case for oil amid price volatility
We've been watching uranium closely over the last few weeks, but now I want to hone in briefly on oil, which of course is a different aspect of the energy sector.
It wasn't a great week for oil prices, with West Texas Intermediate crude falling below the US$85 per barrel level, and Brent crude tumbling below US$90. Concerns about demand are central to these price drops as worries about a global recession loom and as major consumer China continues COVID-19 lockdowns.
I heard recently from Eric Nuttall of Ninepoint Partners, who said that while demand is a big concern for investors right now, it doesn’t affect his bullish oil thesis — in his opinion, supply is the industry's real story.
When it comes to supply, Eric looks at three main baskets: US shale, the Organization of the Petroleum Exporting Countries (OPEC) and "supermajors," which are large global oil companies.
He sees supply constraints coming for a number of reasons — he thinks OPEC is close to exhausting its spare capacity, and in his view, US shale supply won't increase to its previous high levels; he also doesn't see the global supermajors rushing to boost output.
"It's this mismatch between supply growth and demand growth that makes us excited" — Eric Nuttall, Ninepoint Partners
That said, Eric acknowledged that oil price volatility is high right now, which might be offputting for some market participants. He emphasized the importance of tuning out the noise, saying it's now more important than ever.
With oil in mind, we asked our Twitter followers this week if they're investing in the sector or think it's too uncertain. By the time the poll closed, most respondents said the market does interest them.
We'll be asking another question on Twitter next week, so make sure to follow us @INN_Resource and follow me @Charlotte_McL to share your thoughts!
Want more YouTube content? Check out our YouTube playlist At Home With INN, which features interviews with experts in the resource space. If there's someone you'd like to see us interview, please send an email to cmcleod@investingnews.com.
And don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
- Eric Nuttall: Oil Bull Market on Fast-forward Due to Russia/Ukraine War ›
- Eric Nuttall: Oil in Multi-year Bull Market, Supply Crisis Coming ›
- Oil and Gas Outlook 2022: Uncertainty and Risk to Drive Prices ›
The Beginner’s Guide to Investing in Oil and Gas
Ready to invest in oil and gas? Our beginner's guide makes it simple to get started.
Download your investing guide today.
Learn About Exciting Investing Opportunities in the Oil and Gas Sector
Your Newsletter Preferences
With an eye for detail and over a decade of experience covering the mining and metals sector, Charlotte is passionate about bringing investors accurate and insightful information that can help them make informed decisions.
She leads the Investing News Network's video and event coverage, and guides a team of writers reporting on niche investment markets.
Latest News
Investing News Network websites or approved third-party tools use cookies. Please refer to the cookie policy for collected data, privacy and GDPR compliance. By continuing to browse the site, you agree to our use of cookies.Â
With an eye for detail and over a decade of experience covering the mining and metals sector, Charlotte is passionate about bringing investors accurate and insightful information that can help them make informed decisions.
She leads the Investing News Network's video and event coverage, and guides a team of writers reporting on niche investment markets.
Learn about our editorial policies.