CNBC: From Gold and Silver, to Oil and Aluminum: Where Analysts See Prices Now That the Fed Has Cut Rates
Article by Weizhen Tan in CNBC
The U.S. Federal Reserve cut its benchmark interest rate on Wednesday and more reductions are expected in the coming months.
Analysts at both Citi and HSBC have taken the opportunity to do deep dives into how commodities are likely to perform looking ahead.
Citi said in a fourth-quarter outlook report that the U.S. and global cutting rate cycles are set to “move into full swing” by the year end and should prove “very bullish” for precious metals, as real rates decline and growth concerns remain elevated.
Median, annualized returns for precious metals were 13% in the six months following the first Fed rate cut in the past four cycles in 1995, 2001, 2007 and 2019, according to Citi. Twelve-month returns for the two most recent periods averaged ......