NASDAQ Says Gold Was Most Popular Asset in 2022

Gold was one of the most popular investments in the year 2022, according to a report by NASDAQ, the world’s largest stock exchange. In fact, gold outpaced a number of other assets including the United States dollar and the Japanese yen. However, Morgan Stanley economists said that gold prices could peak and then retreat in the coming years.

Barrick Gold Corporation reported in-line earnings and revenue for the second quarter of 2022

Barrick Gold Corporation (GOLD) reported in-line earnings and revenue for the second quarter of 2022. Its net earnings came in at $0.27 per share. The company’s sales were $2,859 million. However, its revenue fell 6.81% year over year.

Copper production was strong and helped Barrick beat analysts’ expectations. The company’s second quarter production was 120 million pounds of copper. In addition, Barrick reported a higher realized price for gold than in the first quarter. Overall, Barrick expects to hit its mid-point of yearly copper guidance.

Higher energy costs and a lower copper price impacted Barrick’s cost structure. Still, the company expects to meet its 2022 production guidance. All-in sustaining costs are projected to be 3% to 5% higher.

Barrick’s balance sheet is deleveraging. In Q2, the company repatriated surplus cash from Kibali Mines in the Democratic Republic of the Congo. At the end of the quarter, the company had $636 million in cash and over $600 million in net cash.

Agnico Eagle Mines reported in-line earnings and revenue for the second quarter of 2022

Agnico Eagle Mines Limited (AEM) reported second quarter 2022 results that met and exceeded investor expectations. The company posted revenues of $1,581.1 million and net income of $275.8 million, which exceeded Zacks Consensus Estimate of $1,556 million and $0.75 per share, respectively. These figures marked a 19% increase over the prior-year quarter. In addition, the company announced a quarterly dividend of $0.40 per share.

For the first half of 2022, Agnico Eagle reported total cash costs of $712 per GEO(2) and AISC of $988 per GEO(2), which were both increases over the previous quarter. The increase in all-in sustaining costs was primarily due to higher sales volumes and realization of higher metal prices.

AEM continued to see strong production. Total payable gold production in the second quarter was 858,170 ounces, which was up 63% from the same period last year. The company’s payable gold production is expected to range between 3.2 and 3.4 million ounces for the full year.

ETF outflows jumped to 227 tonnes during the third quarter

The third quarter of 2017 was a roller coaster ride for the gold and silver markets. As expected, the dollar took a beating, and prices were driven up by a combination of central bank and retail demand. Despite this, demand still grew by about 28% year-on-year, with some markets like Australia, China and the UK outperforming their respective peers. However, investment demand in South Korea continued its downward trend and overall net investment in the country was a paltry 3t in Q3.

Overall, the gold market was surprisingly resilient, despite the usual dollar depreciation. In spite of this, the largest single contributor to overall outflows was the US. This was a reflection of the hawkish Fed, which has sparked a spate of outright buying, and the specter of stagflation. Nevertheless, gold ETF holdings rose to 3,548t by the end of September.

Despite this, there was more than a little bit of confusion in the markets. Outflows were skewed toward larger, more liquid funds, and sentiment was a bit more negative.

Morgan Stanley economists believe prices will “peak then retreat”

Inflation will peak then retreat in 2022, according to a new Morgan Stanley note. As supply and demand dynamics settle, price increases will be more gradual. And the Fed and the ECB will not take drastic measures to raise rates, the report says.

The report predicts that inflation in the major markets will peak in 2022 and then retreat by two percentage points over the next two years. And while the economy may slow down, emerging markets will continue to grow, especially Asia. While the cyclical tech sector could lag, health care stocks, the firm said, should see “huge upside” in the year ahead.

The firm also expects the ECB to hold off until late 2023 and the Fed to wait until September 2022 before raising interest rates. These forecasts may be disappointing for investors who have been anticipating two rate hikes in the near future. But, the firm’s economists argue, the economic conditions will be better than they have been in recent years.