Gold and Oil Analysis from HSBC

HSBC Asset Management drew attention to the effects of shocks in the oil market on inflation and interest rates, listed the fundamental factors supporting the long-term outlook for gold, and shared recent market data.

Shocks in the Oil Market and Their Effects

HSBC Asset Management stated that investors should closely monitor the scale of the recent shock in the oil market and how long its effects might last.

It was emphasized that movements in oil prices can directly affect growth, inflation, corporate profitability, and risk appetite in the markets.

Inflation and Interest Rate Outlook

It was stated that energy- and geopolitically-driven supply shocks push inflation upward, while strong growth and a robust labor market provide room for central banks.

It was assessed that this environment could lead to more volatile inflation and interest rates remaining high for a longer period.

Long-Term Supporting Factors for Gold

HSBC made positive evaluations regarding the long-term outlook for gold, which is categorized among precious metals.

The three main factors supporting the long-term outlook for gold were listed as its safe-haven feature, its role as a portfolio diversification tool, and its function as a store of value.

Current Gold Prices and Data

According to market data in the HSBC report, gold traded at 4,384 dollars per ounce as of September 18.

It was noted that gold rose by 0.8 percent in the last week, 1.1 percent in the last month, and 4.1 percent in the last three months.

It was reported that the annual increase rate of the precious metal stood at 20.3 percent.