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Gold prices holding gains as Fed holds rates low through 2023 – Kitco NEWS

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(Kitco News) – The gold market is maintaining its buying momentum as the Federal Reserve expects to keep interest rates at current levels through 2023 as they look for economic growth to pick up.

As expected the Federal Reserve left interest rates unchanged within its zero-bound range. Although interest rates are expected to remain low, the central bank is slightly more optimistic on economic growth through the end of the year.

December gold futures last traded at $1,972.10 an ounce, up 0.30% on the day.

According to some commodity analyst, gold prices are reacting to the fact that the Federal Reserve is committed to letting inflation run hot.

“The committee decided to keep the target range for the federal funds rate at 0 to 1/4 percent and expects it will be appropriate to maintain this target range until labor market conditions have reached levels consistent with the Committee’s assessments of maximum employment and inflation has risen to 2 percent and is on track to moderately exceed 2 percent for some time,” the central bank said in its monetary policy statement.

The Federal Reserve did note that economic activity is picking up but still remains below levels seen before the nation was deviated by the COVID-19 pandemic.

“The path of the economy will depend significantly on the course of the virus. The ongoing public health crisis will continue to weigh on economic activity, employment, and inflation in the near term, and poses considerable risks to the economic outlook over the medium term,” the statement said.

Adam Button, chief currency strategist at Forexlive.com said that the Federal Reserve’s long-term outlook will continue to support the drive in equity markets as interest rates are expected to remain at current levels though 2023.

“For me, the 2023 forecasts are the real tell. They see 4.0% unemployment, 2.0% core CPI and still there’s an almost universal commitment to keep rates at 0%. That tells you everything you need to know about the Powell Fed. It’s a bonanza for risk assets,” he said.

However, he also said that he sees the gold market also doing well in this environment.

The following is a recap of the Federal Reserve’s economic projections.

In the latest interest rate projections, also known as the dot plots, the central bank’s median forecast is for interest rates to be around 0.1% this year through to 2023. The projections noted long-term inflation will come in at 2.5%, unchanged from June’s forecast.

Looking at growth, the Federal Reserve expects U.S. gross domestic product contract by 3.7% this year, up from June’s estimated decline of 6.5%. However economic growth is forecasted to be lower for the next two years. Economic activity is expected to increase by 4% in 2021, down from June’s estimates of 5%; the economy is expected to grow 3% in 2022, down from the previous estimate of 3.5%. In the first look for 2023, the central banks expects to see growth of 2.5%

The committee is also optimistic that it will see a lower unemployment rate for the next few years. For 2021, the unemployment rate is expected to hover around 7.6%, down from June’s forecast of 9.3%. The unemployment rate is expected to fall to 5.5% in 2021, and 4.6% by 2022, down from the previous estimate of 6.5% and 5.5%, respectively. By 2023 the unemployment rate is expected to fall to 4.0%.

The U.S. central bank is also forecasting higher inflation pressures to build. The projections show inflation rising 1.2% this year, up from the previous estimate of 0.8%; inflation is expected to rise 1.7%, up from June’s forecast of 1.6%. In 2022, inflation is expected to rise 1.8%, up from the prior projection of 1.7%. By 2023, the central bank expects inflation to rise to 2%.

Core inflation expectations, which strip out volatile food and energy prices, are expected to push to 1.5%, up from June’s forecast of 1.0%; for 2021 core inflation is expected to rise to 1.7%, up from the previous projection of 1.5% and inflation in 2022 is expected to rise to 1.8%, up from June’s forecast of 1.7%. The central bank expects core inflation to rise to 2% by 2023.

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Stop Asking Your Interviewer Cliché Questions

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Most job search advice is cookie-cutter. The advice you’re following is almost certainly the same advice other job seekers follow, making you just another candidate following the same script.

In today’s hyper-competitive job market, standing out is critical, a challenge most job seekers struggle with. Instead of relying on generic questions recommended by self-proclaimed career coaches, which often lead to a forgettable interview, ask unique, thought-provoking questions that’ll spark engaging conversations and leave a lasting impression.

English philosopher Francis Bacon once said, “A prudent question is one half of wisdom.”

The questions you ask convey the following:

  • Your level of interest in the company and the role.
  • Contributing to your employer’s success is essential.
  • You desire a cultural fit.

Here are the top four questions experts recommend candidates ask; hence, they’ve become cliché questions you should avoid asking:

  • “What are the key responsibilities of this position?”

Most likely, the job description answers this question. Therefore, asking this question indicates you didn’t read the job description. If you require clarification, ask, “How many outbound calls will I be required to make daily?” “What will be my monthly revenue target?”

  • “What does a typical day look like?”

Although it’s important to understand day-to-day expectations, this question tends to elicit vague responses and rarely leads to a deeper conversation. Don’t focus on what your day will look like; instead, focus on being clear on the results you need to deliver. Nobody I know has ever been fired for not following a “typical day.” However, I know several people who were fired for failing to meet expectations. Before accepting a job offer, ensure you’re capable of meeting the employer’s expectations.

  • “How would you describe the company culture?”

Asking this question screams, “I read somewhere to ask this question.” There are much better ways to research a company’s culture, such as speaking to current and former employees, reading online reviews and news articles. Furthermore, since your interviewer works for the company, they’re presumably comfortable with the culture. Do you expect your interviewer to give you the brutal truth? “Be careful of Craig; get on his bad side, and he’ll make your life miserable.” “Bob is close to retirement. I give him lots of slack, which the rest of the team needs to pick up.”

Truism: No matter how much due diligence you do, only when you start working for the employer will you experience and, therefore, know their culture firsthand.

  • “What opportunities are there for professional development?”

When asked this question, I immediately think the candidate cares more about gaining than contributing, a showstopper. Managing your career is your responsibility, not your employer’s.

Cliché questions don’t impress hiring managers, nor will they differentiate you from your competition. To transform your interaction with your interviewer from a Q&A session into a dynamic discussion, ask unique, insightful questions.

Here are my four go-to questions—I have many moreto accomplish this:

  • “Describe your management style. How will you manage me?”

This question gives your interviewer the opportunity to talk about themselves, which we all love doing. As well, being in sync with my boss is extremely important to me. The management style of who’ll be my boss is a determining factor in whether or not I’ll accept the job.

  • “What is the one thing I should never do that’ll piss you off and possibly damage our working relationship beyond repair?”

This question also allows me to determine whether I and my to-be boss would be in sync. Sometimes I ask, “What are your pet peeves?”

  • “When I join the team, what would be the most important contribution you’d want to see from me in the first six months?”

Setting myself up for failure is the last thing I want. As I mentioned, focus on the results you need to produce and timelines. How realistic are the expectations? It’s never about the question; it’s about what you want to know. It’s important to know whether you’ll be able to meet or even exceed your new boss’s expectations.

  • “If I wanted to sell you on an idea or suggestion, what do you need to know?”

Years ago, a candidate asked me this question. I was impressed he wasn’t looking just to put in time; he was looking for how he could be a contributing employee. Every time I ask this question, it leads to an in-depth discussion.

Other questions I’ve asked:

 

  • “What keeps you up at night?”
  • “If you were to leave this company, who would follow?”
  • “How do you handle an employee making a mistake?”
  • “If you were to give a Ted Talk, what topic would you talk about?”
  • “What are three highly valued skills at [company] that I should master to advance?”
  • “What are the informal expectations of the role?”
  • “What is one misconception people have about you [or the company]?”

 

Your questions reveal a great deal about your motivations, drive to make a meaningful impact on the business, and a chance to morph the questioning into a conversation. Cliché questions don’t lead to meaningful discussions, whereas unique, thought-provoking questions do and, in turn, make you memorable.

_____________________________________________________________________

 

Nick Kossovan, a well-seasoned veteran of the corporate landscape, offers “unsweetened” job search advice. You can send Nick your questions to artoffindingwork@gmail.com.

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Canadian Natural Resources reports $2.27-billion third-quarter profit

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CALGARY – Canadian Natural Resources Ltd. reported a third-quarter profit of $2.27 billion, down from $2.34 billion in the same quarter last year.

The company says the profit amounted to $1.06 per diluted share for the quarter that ended Sept. 30 compared with $1.06 per diluted share a year earlier.

Product sales totalled $10.40 billion, down from $11.76 billion in the same quarter last year.

Daily production for the quarter averaged 1,363,086 barrels of oil equivalent per day, down from 1,393,614 a year ago.

On an adjusted basis, Canadian Natural says it earned 97 cents per diluted share for the quarter, down from an adjusted profit of $1.30 per diluted share in the same quarter last year.

The average analyst estimate had been for a profit of 90 cents per share, according to LSEG Data & Analytics.

This report by The Canadian Press was first published Oct. 31, 2024.

Companies in this story: (TSX:CNQ)

The Canadian Press. All rights reserved.

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Cenovus Energy reports $820M Q3 profit, down from $1.86B a year ago

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CALGARY – Cenovus Energy Inc. reported its third-quarter profit fell compared with a year as its revenue edged lower.

The company says it earned $820 million or 42 cents per diluted share for the quarter ended Sept. 30, down from $1.86 billion or 97 cents per diluted share a year earlier.

Revenue for the quarter totalled $14.25 billion, down from $14.58 billion in the same quarter last year.

Total upstream production in the quarter amounted to 771,300 barrels of oil equivalent per day, down from 797,000 a year earlier.

Total downstream throughput was 642,900 barrels per day compared with 664,300 in the same quarter last year.

On an adjusted basis, Cenovus says its funds flow amounted to $1.05 per diluted share in its latest quarter, down from adjusted funds flow of $1.81 per diluted share a year earlier.

This report by The Canadian Press was first published Oct. 31, 2024.

Companies in this story: (TSX:CVE)

The Canadian Press. All rights reserved.

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