Top Stories This Week: Gold Nears US$1,850, “Everything Looks Good” in Oil and Gas
It was a week of upward momentum for the gold price, which took off mid-week, briefly passing US$1,846 per ounce after going as low as U$1,810 earlier in the period.
The metal was around US$1,830 at the time of this writing on Friday (January 21) afternoon.
Industry commentators have explained gold’s increase by pointing to a slew of factors, including weakness in the US dollar and lower 10 year Treasury yields, along with a correction in the NASDAQ Composite (INDEXNASDAQ:.IXIC) that left the index down over 10 percent from its November high.
Of course, inflation continues to loom large, and coming up next week gold market watchers will be eyeing the first Federal Open Market Committee meeting of the year — we’ll keep you posted on what we learn.
This week’s poll touches on gold, but also brings in two of our other most popular topics here at INN: silver and uranium. We asked our Twitter followers which of those three commodities they think will perform the best in 2022, and by the time voting closed uranium had won by a landslide with 65 percent of the vote.
Aside from gold, I had the chance to speak recently with Eric Nuttall of Ninepoint Partners about oil and gas, which we don’t often get to hear about on our channel.
Eric did a great job of explaining the supply and demand fundamentals at play in the market, and said he thinks oil prices will be “well in excess” of US$80 per barrel this year, with a shot at making it to US$100.
Interestingly, he said the biggest struggle for him in evaluating companies right now is that everything looks good — however, he does favor small Canadian oil and gas companies.
“My biggest challenge is everything looks good — large caps look good, small caps look good. Oil looks good, natural gas looks good. Services look good, offshore drilling looks good — everything looks good” — Eric Nuttall, Ninepoint Partners
Several commenters on our YouTube channel wondered about specific stock selections from Eric, which we didn’t have a chance to cover in the interview. However, it’s worth noting that he manages the Ninepoint Energy Fund, whose top holdings as of December 31, 2021, can be viewed online.
To close out, I want to share a quick note on INN’s outlook content. At the end of every year, our reporters reach out to experts in the many industries we cover, from gold to lithium to cannabis and more. We then compile the information these market watchers share to give our audience a look at the year ahead.
This week we published our diamond and graphite outlooks. I’ve always had a soft spot for diamonds, and the experts INN spoke to believe the industry is looking much stronger after 2020 losses caused by COVID-19 — innovations in online sales in particular have helped prices rebound.
Electric vehicles are a key part of the graphite story since it’s used in lithium-ion battery anodes, and analysts advise keeping an eye on any shifts in the market share for natural graphite vs. synthetic graphite.
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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.