GAINS AND STABILITY
Bitcoin prices have increased to over $27,000 due to higher transaction fees caused by congestion on the network. Furthermore, Litecoin has reported the best gains amongst the top 10 non-stable coin cryptocurrencies, and Ether has managed to remain above the support level of $1,800 despite facing performance issues last week. Overall, the total crypto market capitalization rose slightly while the total trading volume decreased.
GOLD PRICES INCREASE
Gold has bounced back, ending three consecutive sessions of losses as investors remained cautious about the U.S. debt ceiling dispute, which could generate concerns about a possible global economic slowdown. As a result, spot gold increased by 0.1% to $2,013.99 per ounce, while U.S. gold futures remained unchanged at $2,018.80 an ounce. Despite these results, it is believed that gold prices could be at risk of a temporary decline if a favorable solution is found to the U.S. debt ceiling crisis, and if the Federal Reserve continues its rate-hiking trend.
PLATINUM DEMAND EXPECTED TO RISE
The World Platinum Investment Council (WPIC) has recently revealed that the demand for platinum is expected to exceed supply, which could lead to a potential record-high shortage. Platinum consumption is predicted to exceed supply by over 983,000 ounces in 2023 – a significant increase from the 556,000 ounces forecasted in March. The expanding platinum deficit is mostly attributed to the fall in recycled supply and a dip in output from South Africa. Platinum prices have risen by over 20% since February, and the WPIC’s report forecasts ETFs to make their first platinum purchases since 2020, while industrial demand will also increase due to capacity expansions in China.
OIL PRICES STABLE
Oil prices have finally stabilized after falling continuously for the past four weeks due to fears over a possible recession in the U.S. and China’s slow recovery. Nevertheless, these concerns have been balanced against expectations of future demand increasing as refinery margins have been gradually recovering, and there has been an increase in car usage and air travel in China.
KEY EVENTS HAPPENING THIS WEEK
Monday: New York Fed Manufacturing Index report for April.
Tuesday: U.S debt ceiling talks, Industrial production and U.S retail sales reports for April.
Wednesday: Housing Starts report for April.
Thursday: Initial jobless claim weekly report.
