As turmoil within the banking sector continues within the US and elsewhere, Joe Cavatoni, chief market strategist, Americas, on the World Gold Council, shared his ideas on key drivers for the yellow metallic.

“Entrance of thoughts and high of thoughts for everybody is the tactical utility of gold because of the monetary cracks which are showing with the banks,” he advised the Investing Information Community, noting that that is driving gold’s worth as a protected haven.

Market contributors even have questions on inflation and the outlook for the US economic system, together with whether or not the nation is headed towards a recession. In Cavatoni’s view, this might very properly be what occurs.

“If that’s the case, then that is the place gold goes to proceed to play a key position extra strategically as a long-term asset which performs exceptionally in a world of recessions,” he stated, noting that the dear metallic tends to carry out properly in these durations.

Cavatoni additionally spoke about gold demand traits, together with 2022’s report shopping for from central banks. When requested if these entities will proceed snapping gold up this yr, he stated the World Gold Council is watching rigorously.

“Our expectation is that we will proceed to see some stage of shopping for. And the explanation we see that doubtlessly taking part in out is the questions and considerations across the US economic system, the US greenback and the way diversification in a reserve portfolio would possibly unfold,” he defined. “So is our expectation that can we see a report yr like we did in 2022? We do not know. However we do not suppose that central banks shall be slowing down totally on their buying — so we should always count on to see extra.”

Watch the interview above for extra from Cavatoni on gold provide and demand, plus general market traits.

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Securities Disclosure: I, Charlotte McLeod, maintain no direct funding curiosity in any firm talked about on this article.

Editorial Disclosure: The Investing Information Community doesn’t assure the accuracy or thoroughness of the data reported within the interviews it conducts. The opinions expressed in these interviews don’t replicate the opinions of the Investing Information Community and don’t represent funding recommendation. All readers are inspired to carry out their very own due diligence.