Recession 2023: Gold shines back, but crude oil boils down - is this a sign of recession

Recession: IMF head Kristalina Georgieva said in a recent interview that the Russia-Ukraine war, rising interest rates and rising corona cases in China will have a bad impact on the global economy. In such a situation, the condition of the economy of UK, US, and China can be worse this year than in 2022.

Recession:

Concern has increased due to the possibility of recession worldwide. IMF head Kristalina Georgieva said that this year will be more difficult than 2022. In this, one-third of the world's economy will be in the grip of recession. It is the fear of recession that is once again registering a boom in gold. While there is a softening in the prices of crude oil. In such a situation, is the global economy in the grip of recession?

Increased demand for gold as a safe investment

In bad economic conditions, gold is seen as a safe investment. In such a situation, the demand for gold increases in difficult times. That is why there was a rise of 2.25% in gold prices in a week. Yesterday i.e. on January 4, gold had crossed 56,000 on MCX after two and a half years. Let us inform that earlier in August 2020, gold had touched a record level of ₹ 56,191 per 10 grams.

Crude broken by sluggishness in economic activity

Now if we look at the prices of crude oil, then in a week it registered a softening of about 6%. The reason for this is weak demand from the world's largest oil buyer China. Because the consumption of crude has decreased rapidly due to the increasing outbreak of Corona in China. Explain that the consumption of crude oil reflects the activity of any economy. Brent crude prices are trading below $80 per barrel in the international market. While WTI crude has slipped below $75 per barrel.

2023 will be bad for UK, US and China

IMF head Kristalina Georgieva said in a recent interview that the Russia-Ukraine war, rising interest rates and rising corona cases in China will have a bad impact on the global economy. In such a situation, the condition of the economy of UK, US, and China can be worse this year than in 2022. Earlier, in October 2022, the IMF had cut the Global Economic Growth Outlook.