Big Oil seizes lithium opportunities
Mining companies could benefit in cash and technology as major fossil fuel companies invest in lithium.
A poll of investment banks conducted late last year by The Wall Street Journal predicted that the price of gold would “hover around” $1,100 per troy ounce in 2016. They felt the outlook for the precious metal wasn’t so shiny given that U.S. interest rates were expected to rise several times this year. When borrowing costs rise, gold loses its allure because it doesn’t offer a yield to investors like bonds and dividend-paying stocks do.
However, the economy’s unexpectedly weak performance amid slack global growth stalled the Federal Reserve’s rate hike plans — and helped fuel a resurgence in the gold market that caught many observers by surprise.
