Fed Chairman Jerome Powell’s semi-annual report to the Senate Banking Committee tended to be pessimistic, helping the gold price to stabilize.Powell does not expect the US economy to return to its former strength quickly. In his opinion, this will only be possible if US citizens are convinced that the pandemic is completely over. At the moment, it does not look like that if you look at the development of new infections in China, Latin America and the USA. On the other hand, yesterday’s Tuesday saw a positive surprise in retail sales and the figures for industrial production, which fell by 6.1 percent and 15.3 percent p.a. were less bad than expected.
Oil price: flash in the pan according to the IEA monthly report
Yesterday, the International Energy Agency (IEA) revised its 2010 demand forecast from 91.2 million to 91.7 million barrels a day. A return to the pre-crisis level is not possible before 2022. The American Petroleum Institute’s report, released Tuesday evening, showing a higher than expected 3.9 million barrel increase, then pushed the oil price back down. The fossil fuel could experience new impulses in the afternoon when the US Energy Information Administration (4.30 p.m.) will publish its weekly report on the development of storage reserves and production figures.