Tighter credit market conditions highlighted in Fed's Senior Loan Officer Survey could support gold prices

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Tighter credit market conditions highlighted in Fed's Senior Loan Officer Survey could support gold prices

Some economists have noted that traditionally the quarterly Senior Loan Officer Survey is not a major report that is highly followed. However, many have been waiting for this report to gauge how badly the banking crisis has impacted the banking sector.

According to the survey, "Survey respondents reported, on balance, tighter standards and weaker demand for commercial and industrial loans to large and middle-market firms as well as small firms over the first quarter. Meanwhile, banks reported tighter standards and weaker demand for all commercial real estate loan categories.""Banks reported expecting to tighten standards across all loan categories.

"Gold looks like it wants to make another run towards record territory. Too many recessionary risks are on the table for gold to see a significant pullback," he said. "Gold might be stuck in a range until we get that key inflation report."

 

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