<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107386786-1710332256577-gettyimages-2066794515-porzycki-bahraind240304_npQj7-820x461.png" alt="" class="wp-image-465841" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107386786-1710332256577-gettyimages-2066794515-porzycki-bahraind240304_npQj7-820x461.png 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107386786-1710332256577-gettyimages-2066794515-porzycki-bahraind240304_npQj7-300x169.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107386786-1710332256577-gettyimages-2066794515-porzycki-bahraind240304_npQj7-160x90.png 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107386786-1710332256577-gettyimages-2066794515-porzycki-bahraind240304_npQj7-768x432.png 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107386786-1710332256577-gettyimages-2066794515-porzycki-bahraind240304_npQj7.png 1200w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A view of an oil well at Arab Desert in Jebel Dukhan, Bahrain on March 4, 2024. Nurphoto | Nurphoto | Getty Images</figcaption></figure>



Investors could be caught off guard by the strength of an oil price rally this summer, according to Morgan Stanley’s Martijn Rats.



His comments came as oil prices rose on Wednesday amid fears of potential supply disruption after Ukrainian drone attacks on Russian refineries, and hopes that the Federal Reserve may soon start cutting interest rates which traditionally boosts demand.



International benchmark Brent crude futures for May delivery traded at $83.23 a barrel at 12:20 p.m. London time, up $1.3 for the session, while U.S. West Texas Intermediate (WTI) futures for April delivery stood at $78.95, roughly $1.37 higher.



Brent futures have largely been trading in a narrow $75 to $85 interval since the start of the year.



“They are quite benign. We’ve had a nice rally [in] December, January and first half of February but the last couple of weeks we’ve been fairly rangebound,” Rats told CNBC’s “Squawk Box Europe” on Wednesday.



“There is a view in the market that the non-OPEC producers can meet all of the demand growth this year and therefore there isn’t much incremental room for OPEC oil and that means you rely on continued OPEC cuts,” Rats said.



“Now, they are doing that, but people think that that dynamic for now puts a little bit of a cap on the price. We’ve had a good amount of spare capacity. I think the summer could be tighter than people expect but this is the dynamic that currently exists.”



Earlier this month, OPEC+ agreed to extend voluntary output reductions until the end of the second quarter in a bid to shore up the short-term stability of crude markets.



OPEC+ refers to a group of some of the world’s largest oil producers, including heavyweights such as Saudi Arabia and Russia.



<h2 class="wp-block-heading" id="h-really-elevated-prices"><a></a>‘Really elevated prices’</h2>



Asked why fuel supplies could be tighter in the summer, Rats said that the oil research community had been “quite cautious” about the outlook at the start of the year. However, a flurry of stronger-than-expected data had convinced many to upwardly revise oil demand forecasts.



“On the supply side, we’re seeing a slowdown in U.S. shale, we’ve seen a wobbly start in Brazil [and] we’ve seen a wobbly start in Canada. We expected inventories to build but year-to-date they are kind of flat. If in the first quarter, inventories [are] flat then they can draw possibly quite significantly during the summer period.”



Rats said there were plenty of indicators, such as physical differentials and refining margins, among others, that indicate the oil market has already tightened a bit more than the current spot price suggests.



“Now, at the moment we are going through oil refinery maintenance so [this] is always a bit of a soft part of the year but I think as the summer driving season unfolds, inventories draw … look, we’re not calling for the super cycle, but we could have a bit of strength in the summer.”



The summer driving season typically refers to the months between the U.S. Memorial Day and Labor Day holidays when people in the Northern Hemisphere tend to hit the roads.



Speaking to CNBC’s Dan Murphy in late January, Amrita Sen of Energy Aspects said geopolitical factors such as the Israel-Hamas war and tensions in the Red Sea could also push oil prices higher this summer.



Reflecting on attacks in the Red Sea, Sen said that naphtha (a hydrocarbon mixture) and jet fuel markets had been significantly impacted.



“This is the weak period for jet demand,” Sen said.



“Summer jet is ahead of us, and we think these attacks are going to go on for months so we could see some really elevated prices into the summer.”



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Oil strategist says the market could be caught off guard by a crude spike this summer

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107385510-1710163312883-gettyimages-1246952831-20090101230209-99-537362-820x462.jpeg" alt="" class="wp-image-465729" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107385510-1710163312883-gettyimages-1246952831-20090101230209-99-537362-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107385510-1710163312883-gettyimages-1246952831-20090101230209-99-537362-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107385510-1710163312883-gettyimages-1246952831-20090101230209-99-537362-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107385510-1710163312883-gettyimages-1246952831-20090101230209-99-537362-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107385510-1710163312883-gettyimages-1246952831-20090101230209-99-537362.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Euros, U.S. dollars, Canadian dollars, Russian rubles and Czech korunas lie on a table as banknotes.  Picture Alliance | Picture Alliance | Getty Images</figcaption></figure>



As inflation loosens its grip in most economies, investors are closely monitoring interest rate decisions, with markets expecting a slew of rate cuts this year.



While rates in most economies are set to remain elevated in 2024, economists expect a mild rollback late this year, the Economist Intelligence Unit said in a recent report. Most central banks sharply hiked policy rates from early 2022 in a bid to stifle inflation.



China and Japan remain exceptions in the global tightening cycle, though Beijing’s rates have started to ease slightly, said the global intelligence firm. EIU also expects the Bank of Japan will exit its negative interest rate policy in the second quarter.



<h2 class="wp-block-heading" id="h-united-states"><a></a>United States</h2>



U.S. Federal Reserve Chair Jerome Powell reiterated last week that he expects interest rates to start coming down this year should inflation signals cooperate, but stopped short of giving a specific timeline.



Inflation as assessed by the Fed’s preferred gauge currently stands at an annual rate of 2.4%, remaining ahead of the Fed’s 2% goal. 



The Fed held rates steady in a range of 5.25% to 5.5% in its January meeting. Markets currently expect the Fed to start with a 25-basis-point rate cut in June.



<h2 class="wp-block-heading"><a></a>Euro zone</h2>



The European Central Bank last week also held its policy rate at a record high of 4%, signaling that it won’t cut rates before June.



The central bank acknowledged that inflation was easing faster than it anticipated and lowered its annual inflation forecast from an average of 2.7% to 2.3%. The ECB has a 2% inflation target.



<h2 class="wp-block-heading"><a></a>Switzerland</h2>



Swiss inflation in February rose 1.2% from a year ago, the lowest reading in almost two and a half years, fueling hopes that the Swiss National Bank could trim interest rates in its March 21 meeting.



The SNB’s current policy rate stands at 1.75%, and the central bank has an inflation target range of between 0% and 2%. According to LSEG, there’s a more than 40% chance of a 25-basis-point cut in March, which would take the SNB’s key rate down to 1.5%.



UBS expects the SNB to wait until the second quarter for its first key interest rate cut, while not ruling out the possibility of a cut this month.



<h2 class="wp-block-heading"><a></a>Bank of Canada</h2>



In March, the Bank of Canada left rates unchanged for a fifth consecutive meeting. Its governor said that it was too early to consider a cut.



Canada’s inflation slowed to 2.9% in January, compared with a year ago. That’s a drop from December’s 3.4% and within the BOC’s target range of 1% to 3%.



<h2 class="wp-block-heading">Turkey</h2>



Turkey’s central bank kept its interest rate steady at 45% in February, ending its tightening cycle after eight straight hikes, with many expecting it to hold for most of 2024. The country’s inflation currently stands at around 65%.



JPMorgan said in a research note that the Turkish central bank may cut its policy rate in November and December, keeping its year-end policy rate forecast of 45%.&nbsp;



<h2 class="wp-block-heading"><a></a>Australia</h2>



The Reserve Bank of Australia kept rates unchanged in February at a 12-year high of 4.35%.



Nomura predicts the RBA will start cutting rates in August as inflation eases and unemployment rises. The firm said it expects the country to “narrowly avoid a recession.”



In a recent note, ANZ noted that Australia’s economy experienced a “continued slowdown” in the second half of 2023 as fourth-quarter GDP grew just 0.2% from the prior quarter. That comes after third-quarter GDP edged 0.3% higher from the previous three-month period.



<h2 class="wp-block-heading"><a></a>New Zealand</h2>



The Reserve Bank of New Zealand kept the official cash rate steady at 5.5% in its February meeting, forecasting that inflation will re-enter the 1% to 3% per year target band by September.



Auckland Savings Bank does not expect the RBNZ to start cutting the cash rate until November.



<h2 class="wp-block-heading"><a></a>Indonesia</h2>



Indonesia’s central bank kept its benchmark policy rate at 6% in its recent meeting. 



While the Southeast Asian nation’s consumer price inflation is now within the Bank Indonesia’s targeted range of 1.5% to 3.5% for the year, Indonesia’s central bank governor is considering a 75 basis point cut only in the second semester of the year.



“We are still watching closely is about the global spillover&#8230; mainly of the impact of U.S. monetary policy direction,” Bank Indonesia governor Perry Warjiyo recently told CNBC’s JP Ong.



BMI, a Fitch Solutions research unit, expects the bank to lower the benchmark&nbsp;rate to 5% by the end of 2024, starting in the second half of the year in tandem with the U.S. and other developed market central banks “in order to not raise undue depreciatory pressures on the Indonesian rupiah.”



<h2 class="wp-block-heading"><a></a>Bank of Japan</h2>



Unlike its peers, economists expect the Bank of Japan to raise interest rates this year instead of cutting.



The BOJ is expected to move toward ending its negative interest rate policy by April, contingent on annual wage negotiations, said economists at Oxford Economics and Macquarie.&nbsp;



Spring wage negotiations are an important factor in whether Japan’s inflation has sustainably met the BOJ’s 2% target, a prerequisite for the BOJ to end its negative rate policy.



<h2 class="wp-block-heading"><a></a>South Korea&nbsp;</h2>



South Korea’s central bank in late February kept rates steady at 3.5%.



The BOK governor reportedly said that most board members still deem it “premature” to discuss any interest rate cuts while inflation is above target level.



The BOK could still be one of the first in Asia to cut rates, said Goldman Sachs senior Asia economist Goohoon Kwon, citing ongoing disinflation and subdued private consumption.



A strong rebound in exports driven by semiconductors due to the advent of AI will allow the BOK to be less constrained by U.S. monetary policy and inflation, Kwon said.



<h2 class="wp-block-heading"><a></a>So who’s first?</h2>



“The Bank of Canada is my candidate to be the first to cut,” Carl Weinberg, chief economist at High Frequency Economics told CNBC. He explained that Canada’s CPI, excluding shelter prices, is rising by just 1.7%. That’s below the central bank’s inflation target and Weinberg noted that all the prices the BOC can control in the economy are rising less than the inflation target mandates.



“2024 will be the year of the rate cut pivot,” Weinberg added.



But Asian central banks are unlikely to cut ahead of the Fed as a strong U.S. dollar means that most Asian currencies remain relatively weaker, said Morgan Stanley.



The potential for further depreciation could still lend some higher inflation risks to these countries, the investment bank’s economists said in a report.



“While inflation is coming off, in most of the region’s economies it has either just reached the target range or is still closing the gap to target range,” Morgan Stanley said.

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2024 is the year of the rate cut pivot — here’s when the world’s central banks will budge

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/106941351-1639158059467-106941351-1631619886115-gettyimages-1234643404-US-ECONOMY-CPI-820x461.jpg" alt="" class="wp-image-465499" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/106941351-1639158059467-106941351-1631619886115-gettyimages-1234643404-US-ECONOMY-CPI-820x461.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/106941351-1639158059467-106941351-1631619886115-gettyimages-1234643404-US-ECONOMY-CPI-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/106941351-1639158059467-106941351-1631619886115-gettyimages-1234643404-US-ECONOMY-CPI-160x90.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/106941351-1639158059467-106941351-1631619886115-gettyimages-1234643404-US-ECONOMY-CPI-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/106941351-1639158059467-106941351-1631619886115-gettyimages-1234643404-US-ECONOMY-CPI-1536x864.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/106941351-1639158059467-106941351-1631619886115-gettyimages-1234643404-US-ECONOMY-CPI.jpg 1600w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Photo: via CNBC</figcaption></figure>



Inflation rose again in February, keeping the Federal Reserve on course to wait at least until the summer before starting to lower interest rates.



The consumer price index, a broad measure of goods and services costs, increased 0.4% for the month and 3.2% from a year ago, the Labor Department’s Bureau of Labor Statistics reported Tuesday. The monthly gain was in line with expectations, but the annual rate was slightly ahead of the 3.1% forecast from the Dow Jones consensus.



Excluding volatile food and energy prices, the core CPI rose 0.4% on the month and was up 3.8% on the year. Both were one-tenth of a percentage point higher than forecast.



While the 12-month pace is off the inflation peak in mid-2022, it remains well above the Fed’s 2% goal as the central bank approaches its two-day policy meeting in a week.



A 2.3% increase in energy costs helped boost the headline inflation number. Food costs were flat on the month, while shelter rose another 0.4%.



The BLS reported that the increases in energy and shelter amounted to more than 60% of the total gain. Gasoline jumped 3.8% on the month while owners’ equivalent rent, a hypothetical gauge of what homeowners could get renting their properties, rose 0.4%.



“Inflation continues to churn above 3%, and once again shelter costs were the main villain. With home prices expected to rise this year and rents falling only slowly, the long-awaited fall in shelter prices isn’t coming to the rescue any time soon,” said Robert Frick, corporate economist at Navy Federal Credit Union. “Reports like January’s and February’s aren’t going to prompt the Fed to lower rates quickly.”



Airline fares posted a 3.6% increase, apparel prices rose 0.6% and used vehicles were up 0.5%. Medical care services, which helped feed a higher-than-expected CPI increase in January, decreased 0.1% last month.



The year-over-year increase for headline CPI was 0.1 percentage point higher than January, while core was one-tenth of a point lower.



Wall Street opened higher following the report, major stock averages as well as Treasury yields positive in early trading.



While the 12-month pace is off the inflation peak in mid-2022, it remains well above the Fed’s 2% goal as the central bank approaches its two-day policy meeting in a week.



Fed officials in recent weeks both have signaled that rate cuts are likely at some point this year and expressed caution about letting up too soon in the battle against high prices. The statement after the January meeting indicated that policymakers need “greater confidence” that inflation is moving back to target.



Chair Jerome Powell, in congressional testimony last week, echoed those concerns, though he did mention that the Fed is probably “not far” from the point where it can start easing up on monetary policy.



Tuesday’s report “leaves Fed officials some way from attaining the ‘greater confidence’ needed to begin cutting interest rates,” said Paul Ashworth, chief North America economist at Capital Economics.



For financial markets, the shift in the Fed stance from its apparent policy pivot in late 2023 has meant a repricing on the pace of rate cuts. Where futures traders entered the year expecting cuts to start coming in March, with six or seven total on the year, they have pushed out the first reduction to June, with two or three to follow, assuming cuts in quarter percentage point increments.



A bustling economy has helped the Fed focus on incoming data and allowed policymakers to avoid having to rush to lower rates. Gross domestic product expanded at a 2.5% annualized pace in 2023 and is on pace to increase at a 2.5% pace in the first quarter of 2024, according to the Atlanta Fed’s GDPNow tracker.



One key ingredient in that growth has been a resilient consumer boosted by a strong labor market. The economy added another 275,000 nonfarm jobs in February, though the increase skewed heavily to part-time positions and the unemployment rate rose to 3.9%.



Such strength can be a double-edged sword: While the growth in the face of aggressive rate hikes has bought the Fed time on policy, it also raises concerns that inflation could be more durable than expected.



Housing costs in particular have caused concern.



Shelter comprises about one-third of the CPI weighting and has been slow to decelerate, at least according to the BLS measure. Fed officials see rental prices coming down through the year, and other measures outside the CPI computation of owners-equivalent rent have shown easing price pressures.



Correction: The BLS reported that the increases in energy and shelter amounted to more than 60% of the total gain. An earlier version misstated a sector.

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U.S. consumer prices rose 0.4% in February and 3.2% from a year ago

How The Shadowy World Of Organized Retail Crime Works

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107382361-1709644253010-gettyimages-1244106391-AFP_32LT92T-820x461.jpeg" alt="" class="wp-image-465380" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107382361-1709644253010-gettyimages-1244106391-AFP_32LT92T-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107382361-1709644253010-gettyimages-1244106391-AFP_32LT92T-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107382361-1709644253010-gettyimages-1244106391-AFP_32LT92T-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107382361-1709644253010-gettyimages-1244106391-AFP_32LT92T-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107382361-1709644253010-gettyimages-1244106391-AFP_32LT92T-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107382361-1709644253010-gettyimages-1244106391-AFP_32LT92T.jpeg 1600w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Shoppers are seen in a Kroger supermarket in Atlanta on Oct. 14, 2022. Elijah Nouvelage | AFP | Getty Images</figcaption></figure>



Rising gasoline prices likely put a floor under inflation in February, potentially reinforcing the Federal Reserve’s decision to take a go-slow approach with interest rate reductions.



Economists expect that prices across a broad spectrum of goods and services rose 0.4% on the month, just ahead of the January pace for 0.3%, according to the Dow Jones consensus. Excluding food and energy, the increase for core inflation is forecast at a 0.3% gain, also one-tenth of a percentage point above the previous month.



On a year-over-year basis, headline inflation is expected to show a 3.1% gain and core inflation a 3.7% increase when the Labor Department’s Bureau of Labor Statistics releases its latest reading on the consumer price index Tuesday at 8:30 a.m. ET. The respective 12-month readings in January were 3.1% and 3.9%.



Though it has fallen sharply since its peak in mid-2022, inflation’s resilience almost certainly will assure no Fed rate cuts at its next meeting March 19-20, and possibly into the summer, according to current market pricing. Markets were rattled in January when the CPI data came in higher than expected, and Fed officials shifted their rhetoric afterward to a more cautious tone about easing policy.



“While we do not expect the trend in inflation to re-accelerate this year, less clear progress over the next few months is likely to keep the Fed searching for more confidence that inflation is on course to return to target on a sustained basis,” Sarah House, senior economist at Wells Fargo, said in a recent client note.



Energy prices had eased earlier in the winter, putting some downward pressure on headline readings.



But Wells Fargo estimates that energy services rebounded 4% in February, leading to an increase at the pump, where a gallon of regular gas is up about 20 cents, or more than 6%, from a month ago, according to AAA.



The bank also estimates that goods prices have held their ground despite an easing in supply chain pressures and pressure from higher interest rates. On the brighter side, the House said lower prices on travel, medical care and other services helped keep inflation in check.



Still, Wells Fargo has raised its full-year inflation forecast.



The bank’s economists now expect core CPI to run at a 3.3% rate this year, up from the previous 2.8% estimate. Focusing on the core personal consumption expenditures price index, the preferred Fed gauge, Wells Fargo sees inflation at 2.5% for the year, versus a prior estimate of 2.2%.



Wells Fargo isn’t alone in expecting a higher pace of inflation.



In its February survey of consumers, the New York Fed found that while respondents held to their one-year outlook for inflation at 3%, their expectations at the three- and five-year horizons accelerated to 2.7% and 2.9% respectively, both well ahead of the central bank’s 2% target.



While increases in gas prices can play an outsize role in monthly fluctuations for the survey, the outlook for gas price increases was actually relatively benign.



An Atlanta Fed measure of “sticky price” inflation held at 4.6% on a 12-month basis in January. The gauge is weighted toward items such as housing and insurance, and Fed officials are hoping that shelter costs decrease through the year, taking some pressure off the cost of living gauges.



On Thursday, the BLS will release the February producer price index, which measures what producers get for their goods and services at the wholesale level. The two indexes will be the last inflation data the rate-setting Federal Open Market Committee will see before it meets next week.

107382361-1709644253010-gettyimages-1244106391-AFP_32LT92T

A key U.S. inflation reading is due out Tuesday morning. Here’s what to expect

How electric vehicles are upending the 100-year-old auto supply chain

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107370056-1707285383185-gettyimages-1868371082-THAILAND_GOLD-820x461.jpeg" alt="" class="wp-image-465022" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107370056-1707285383185-gettyimages-1868371082-THAILAND_GOLD-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107370056-1707285383185-gettyimages-1868371082-THAILAND_GOLD-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107370056-1707285383185-gettyimages-1868371082-THAILAND_GOLD-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107370056-1707285383185-gettyimages-1868371082-THAILAND_GOLD-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107370056-1707285383185-gettyimages-1868371082-THAILAND_GOLD-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107370056-1707285383185-gettyimages-1868371082-THAILAND_GOLD.jpeg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">An employee holds one kilogram gold bullion at the YLG Bullion International Co. headquarters in Bangkok, Thailand, on Friday, Dec. 22, 2023. Bloomberg | Bloomberg | Getty Images</figcaption></figure>



A record-breaking rally for gold may yet continue, particularly as investors position for interest rate cuts — but analysts say silver appears well placed to outshine the yellow metal in the second half of the year.



Spot gold prices on Monday edged higher to $2,178 per ounce, after settling at their highest since 1979 on Thursday last week.



Spot silver prices, meanwhile, were last seen up 0.2% at $24.36 per ounce at 6:24 a.m. London time (1:24 a.m. ET). The contract, which rose over 5% last week, on Thursday settled at its highest level since late December.



Precious metal prices have pushed higher in recent weeks amid growing expectations of U.S. interest rate cuts. Federal Reserve Chair Jerome Powell on Thursday said that inflation is “not far” from where it needs to be for the central bank to start cutting rates.



Gold, which is typically considered a “safe haven” asset at times of financial uncertainty, has rallied despite high interest rates and a relatively strong U.S. dollar.



“If you look at gold’s correlations, what you can see is that actually despite the narrative of it being a defensive asset, really it oscillates between the two. It can sometimes perform in line with risk and sometimes against risk,” Marcus Garvey, head of commodities strategy at Macquarie, told CNBC’s “Street Signs Europe” on Friday.



“What you need to then get back to is what is the underlying causation of those moves and why is gold reacting in one way or the other, and I think here, really the thing that is setting up gold very well … is expectations of rate cuts. That’s clearly risk positive.”



Garvey said near-term U.S. jobs and inflation data could determine whether gold prices, which he described as “incredibly resilient” so far, push as high as $2,300 or drop back to around $2,100.



“From silver’s perspective, I mean it is sort of round numbers really, you want to get comfortably clear of the $24 level to feel that you have got a bit more room to run. While you are only just north of it, the scope for a correction back down is clearly still a vulnerability,” Garvey said.



“The last thing I might add on silver though, as a dual precious and industrial metal, if we start to see global growth pick up a bit more over the course of this year — which is very much our base case — then I would expect silver to go from a relative underperformer to gold to being a relative outperformer to gold over really the third and fourth quarter of this year.”



<h2 class="wp-block-heading" id="h-a-terrific-year-ahead-for-silver"><a></a>A ‘terrific year’ ahead for silver?</h2>



Gold and silver prices have traditionally shown a strong positive correlation, although silver has sometimes been described as the “poorer cousin” of gold.



Earlier in the year, the Silver Institute said in a report that global silver demand was expected to reach 1.2 billion ounces in 2024, hitting its second-highest level on record.



The institute, a non-profit international association composed of various members across the silver industry, told CNBC last month that it expects silver to have a “terrific year,” particularly in terms of demand.



Silver is primarily used for industrial purposes and commonly incorporated in the manufacturing of automobiles, solar panels, jewelry and electronics.



“Here’s what usually happens with silver: it does move with gold, but it moves later,” Randy Smallwood, CEO of Wheaton Precious Metals, told CNBC in early February.



“Gold will shoot up first and then you will see silver take off rapidly. And silver always outperforms. It’s just late.”



— CNBC’s Lee Ying Shan contributed to this report.

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<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107363787-17061085342022-09-01t184946z_946092228_rc2f8w90zj6x_rtrmadp_0_usa-economy-820x547.jpeg" alt="" class="wp-image-464081" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107363787-17061085342022-09-01t184946z_946092228_rc2f8w90zj6x_rtrmadp_0_usa-economy-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107363787-17061085342022-09-01t184946z_946092228_rc2f8w90zj6x_rtrmadp_0_usa-economy-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107363787-17061085342022-09-01t184946z_946092228_rc2f8w90zj6x_rtrmadp_0_usa-economy-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107363787-17061085342022-09-01t184946z_946092228_rc2f8w90zj6x_rtrmadp_0_usa-economy-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107363787-17061085342022-09-01t184946z_946092228_rc2f8w90zj6x_rtrmadp_0_usa-economy-1536x1024.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107363787-17061085342022-09-01t184946z_946092228_rc2f8w90zj6x_rtrmadp_0_usa-economy-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Photo: via CNBC</figcaption></figure>



Job creation topped expectations in February, but the unemployment rate moved higher and employment growth from the previous two months wasn’t near as hot as initially reported.



Nonfarm payrolls increased by 275,000 for the month while the jobless rate moved higher to 3.9%, the Labor Department reported Friday. Economists surveyed by Dow Jones had been looking for payroll growth of 198,000, a step slower from the downwardly revised gain of 229,000 in January. The December gain also was revised down to 290,000 from 333,000.



The jobless level increased even though the labor force participation rate held steady at 62.5%.



Average hourly earnings, watched closely as an inflation indicator, showed a slightly less than expected increase for the month and a deceleration from a year ago. Wages rose just 0.1% on the month, one-tenth of a percentage point below the estimate, and were up 4.3% from a year ago, below the 4.5% gain in January and slightly below the 4.4% estimate.



Markets showed little reaction to the news, with futures tied to the major averages around flat. Treasury yields, however, were sharply lower.



“It’s got literally a data point for every view on their spectrum,” Liz Ann Sonders, chief investment strategist at Charles Schwab, said of the report.



Job creation skewed toward part-time positions. Full-time jobs decreased by 187,000 while part-time employment rose by 51,000, according to the household survey. That count is used to calculate the unemployment rate and showed a decline of 184,000 in total employment.



From a sector standpoint, health care led with 67,000 new jobs. Government again was a big contributor, with 52,000, while restaurants and bars added 42,000 and social assistance increased by 24,000. Other gainers included construction (23,000), transportation and warehousing (20,000) and retail (19,000).



This is breaking news. Please check back here for updates.

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U.S. job growth totaled 275,000 in February but unemployment rate rises to 3.9%

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/102851129-oilandgold-820x462.jpg" alt="" class="wp-image-458020" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/102851129-oilandgold-820x462.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/102851129-oilandgold-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/102851129-oilandgold-160x90.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/102851129-oilandgold-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/102851129-oilandgold.jpg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">(L) Oil pumpjacks and (R) gold bars
Getty Images</figcaption></figure>



Gold prices could soar to $3,000 per ounce, and oil to $100 per barrel within the next 12 to 18 months subject to any one of three possible catalysts, according to Citi.



Gold, which is currently trading at $2,016, could surge by about 50%, if central banks sharply ramp up purchases of the yellow metal, a possible stagflation, or in case of a deep global recession, Aakash Doshi, Citi’s North America head of commodities research, told CNBC.



<h2 class="wp-block-heading" id="h-central-bank-s-gold-rush"><a></a>Central bank’s gold rush</h2>



“The most likely wildcard path to $3,000/oz gold is a rapid acceleration of an existing but slow-moving trend:&nbsp;de-dollarization across Emerging Markets central banks&nbsp;that in turn leads to a crisis of confidence in the U.S. dollar,” Citi analysts including Doshi wrote in a recent note.



That could double central bank’s gold purchases, challenging jewelry consumption as the largest driver of gold demand, Doshi elaborated.&nbsp;



Central banks’ gold purchases have “accelerated to record levels” in recent years, as they seek to diversify reserves and reduce credit risk, Citi said. China and Russian central banks are leading gold purchases, with India, Turkey, and Brazil, also increasing&nbsp;bullion buying.



The world’s central banks have sustained two successive years of more than 1,000 tons of net gold purchases, the&nbsp;World Gold Council reported in January.



“If that goes again [to] double very quickly to 2,000 tons, we think that would be actually very bullish for gold,” Doshi told CNBC via phone.



<h2 class="wp-block-heading">A global recession?</h2>



Another trigger that could drive gold to $3,000 would be a “deep global recession” that could spur the U.S. Federal Reserves to cut rates rapidly.



“That means the brakes have been cut, not to 3%, but to 1% or lower – that will take us to $3,000,” Doshi said, noting that this is a low probability scenario.



Gold prices tend to share an inverse relationship with interest rates. As interest rates dip, gold becomes more appealing compared to fixed-income assets such as bonds, which would yield weaker returns in a low interest rate environment.&nbsp;



The Fed benchmark interest rate has been between&nbsp;5.25% and 5.5%&nbsp;since July 2023, the highest since January 2001 when it shot to 6% following the dot-com bubble burst. Markets expect&nbsp;the Fed to cut&nbsp;rates in May or June.



Stagflation — an increasing inflation rate, a slowing economic growth and rising unemployment — could be another trigger, though Doshi said there’s a “very low probability” of such a scenario.



Gold is perceived as a safe haven and tends to perform well in periods of economic uncertainty when investors move away from the riskier assets such as equities.



These three potential triggers aside, Citi maintains that their base case for bullion is $2,150 in the second half of 2024, and the price of gold to average a little over $2,000 in the first half. A new record could be reached towards the end of 2024, Doshi added.



<h2 class="wp-block-heading"><a></a>Oil at $100?</h2>



Another wildcard scenario highlighted in Citi’s report was for oil prices to hit triple digits again.



The catalysts for oil to hit $100 per barrel include higher geopolitical risks, deeper OPEC+ cuts and supply disruptions from key oil producing regions, Doshi said.&nbsp;



The ongoing Israel-Hamas war has not hit oil production or exports, with the only significant impact being the Houthi attacks from Yemen on oil tankers and other ships traversing the Red Sea.



Major oil producer Iraq has been impacted by the conflict and any further escalation could hurt other major OPEC+ suppliers in the region, Citi said.



Recent developments show that tensions have been rising on the border between Israel and Lebanon, raising fears that the war in Gaza could spread elsewhere in the Middle East.



Doshi said Iraq, Iran, Libya, Nigeria and Venezuela are vulnerable to supply disruptions, with steeper U.S. sanctions policy on Iran and Venezuela potentially on the cards.&nbsp;



Other geopolitical risks such as Russian oil supplies, should Ukraine attack Russian refineries with drones, cannot be ruled out, Citi’s analysts wrote. Doshi maintained that their base case for oil stands at around $75 per barrel for the year.



Global benchmark Brent’s&nbsp;April futures were trading at $83.56 a barrel, while the U.S.&nbsp;West Texas Intermediate&nbsp;March futures stood at $79.13 per barrel.

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<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107384081-1709831185690-gettyimages-2058827167-powell_banking_402_030724-820x461.jpeg" alt="" class="wp-image-463959" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107384081-1709831185690-gettyimages-2058827167-powell_banking_402_030724-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107384081-1709831185690-gettyimages-2058827167-powell_banking_402_030724-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107384081-1709831185690-gettyimages-2058827167-powell_banking_402_030724-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107384081-1709831185690-gettyimages-2058827167-powell_banking_402_030724-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107384081-1709831185690-gettyimages-2058827167-powell_banking_402_030724-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107384081-1709831185690-gettyimages-2058827167-powell_banking_402_030724.jpeg 1600w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Federal Reserve Chairman Jerome Powell testifies during the Senate Banking, Housing and Urban Affairs Committee hearing titled “The Semiannual Monetary Policy Report to the Congress,” in Dirksen Building on Thursday, March 7, 2024. Tom Williams | Cq-roll Call, Inc. | Getty Images</figcaption></figure>



Federal Reserve Chair Jerome Powell on Thursday indicated that interest rate cuts may not be too far off if inflation signals cooperate.



In remarks to the Senate Banking Committee, the central bank leader didn’t provide a precise timetable of when he sees easing happening, but noted that the day could be coming soon.



“We’re waiting to become more confident that inflation is moving sustainably at 2%. When we do get that confidence, and we’re not far from it, it’ll be appropriate to begin to dial back the level of restriction,” Powell said in response to a question about rates and inflation. He said the cuts would be so the Fed doesn’t “drive the economy into recession rather than normalizing policy as the economy gets back to normal.”



Powell spoke at a time when financial markets have swung considerably in their expectations on Fed policy.



At the beginning of the year, futures traders were betting the Fed would start in March and keep going until it had cut six or seven times this year. The outlook now is for the first cut to come in June, with four reductions totaling a full percentage point by the end of 2024.



Inflation data recently has indicated the pace of price increases is continuing to slow, though the consumer price index rattled markets when it came in higher than expected for January. Still, Powell noted&nbsp;<a href="https://www.cnbc.com/2024/03/06/powell-reinforces-position-that-the-fed-is-not-ready-to-start-cutting-interest-rates.html">in congressional testimony this week</a>&nbsp;that inflation is progressing lower, though not at the point yet where the Fed is ready to cut.



“I think we’re in the right place,” Powell said of the current policy stance.

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<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107383366-1709744654782-gettyimages-2063429688-_s2_1412_35lefe16-820x461.jpeg" alt="" class="wp-image-463622" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107383366-1709744654782-gettyimages-2063429688-_s2_1412_35lefe16-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107383366-1709744654782-gettyimages-2063429688-_s2_1412_35lefe16-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107383366-1709744654782-gettyimages-2063429688-_s2_1412_35lefe16-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107383366-1709744654782-gettyimages-2063429688-_s2_1412_35lefe16-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107383366-1709744654782-gettyimages-2063429688-_s2_1412_35lefe16-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107383366-1709744654782-gettyimages-2063429688-_s2_1412_35lefe16.jpeg 1600w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Photo: via CNBC</figcaption></figure>



Federal Reserve Chair Jerome Powell on Wednesday reiterated that he expects interest rates to start coming down this year, but is not ready yet to say when.



In prepared remarks for congressionally mandated appearances on Capitol Hill Wednesday and Thursday, Powell said policymakers remain attentive to the risks that inflation poses and don’t want to ease up too quickly.



“In considering any adjustments to the target range for the policy rate, we will carefully assess the incoming data, the evolving outlook, and the balance of risks,” he said. “The Committee does not expect that it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent.”



Those remarks were taken verbatim from the Federal Open Market Committee’s statement following its most recent meeting, which concluded Jan. 31.



During the question-and-answer session with House Financial Services Committee members, Powell said he needs “see a little bit more data” before moving on rates.



“We think because of the strength in the economy and the strength in the labor market and the progress we’ve made, we can approach that step carefully and thoughtfully and with greater confidence,” he said. “When we reach that confidence, the expectation is we will do so sometime this year. We can then begin dialing back that restriction on our policy.”



Stocks posted gains as Powell spoke, with the Dow Jones Industrial Average up more than 250 points heading into midday. Treasurys yields mostly moved lower as the benchmark 10-year note was off about 0.3 percentage point to 4.11%.



<h2 class="wp-block-heading" id="h-rates-likely-at-peak"><a></a>Rates likely at peak</h2>



In total, the speech broke no new ground on monetary policy or the Fed’s economic outlook. However, the comments indicated that officials remain concerned about not losing the progress made against inflation and will make decisions based on incoming data rather than a preset course.



“We believe that our policy rate is likely at its peak for this tightening cycle. If the economy evolves broadly as expected, it will likely be appropriate to begin dialing back policy restraint at some point this year,” Powell said in the comments. “But the economic outlook is uncertain, and ongoing progress toward our 2 percent inflation objective is not assured.”



He noted again that lowering rates too quickly risks losing the battle against inflation and likely having to raise rates further, while waiting too long poses danger to economic growth.



Markets had been widely expecting the Fed to ease up aggressively following 11 interest rate hikes totaling 5.25 percentage points that spanned March 2022 to July 2023.



In recent weeks, though, those expectations have changed following multiple cautionary statements from Fed officials. The January meeting helped cement the Fed’s cautious approach, with the statement explicitly saying rate cuts aren’t coming yet despite the market’s outlook.



As things stand, futures market pricing points to the first cut coming in June, part of four reductions this year totaling a full percentage point. That’s slightly more aggressive than the Fed’s outlook in December for three cuts.



<h2 class="wp-block-heading" id="h-inflation-easing"><a></a>Inflation easing</h2>



Despite the resistance to move forward on cuts, Powell noted the movement the Fed has made toward its goal of 2% inflation without tipping over the labor market and broader economy.



“The economy has made considerable progress toward these objectives over the past year,” Powell said. He noted that inflation has “eased substantially” as “the risks to achieving our employment and inflation goals have been moving into better balance.”



Inflation as judged by the Fed’s preferred gauge is currently running at a 2.4% annual rate — 2.8% when stripping out food and energy in the core reading that the Fed prefers to focus on. The numbers reflect “a notable slowing from 2022 that was widespread across both goods and services prices.”



“Longer-term inflation expectations appear to have remained well anchored, as reflected by a broad range of surveys of households, businesses, and forecasters, as well as measures from financial markets,” he added.



Powell is likely to face a variety of questions during his two-day visit to Capitol Hill, which started with an appearance Wednesday before the House Financial Services Committee and concludes Thursday before the Senate Banking Committee.



Questioning largely centered around Powell’s views on inflation and rates.



Republicans on the committee also grilled Powell on the so-called Basel III Endgame revisions to bank capital requirements. Powell said he is part of a group on the Board of Governors that has “real concerns, very specific concerns” about the proposals and said the withdrawal of the plan “is a live option.” Some of the earlier market gains Wednesday faded following reports that New York Community Bank is looking to raise equity capital, raising fresh concerns about the state of midsize U.S. banks.



Though the Fed tries to stay out of politics, the presidential election year poses particular challenges.



Former President Donald Trump, the likely Republican nominee, was a fierce critic of Powell and his colleagues while in office. Some congressional Democrats, led by Sen. Elizabeth Warren of Massachusetts, have called on the Fed to reduce rates as pressure builds on lower-income families to make ends meet.



Rep. Ayanna Pressley, D-Ohio, joined the Democrats in calling for lower rates. During his term, Democrats frequently criticized Trump for trying to cajole the Fed into cutting.



“Housing inflation and housing affordability [is] the No. 1 issue I’m hearing about from my constituents,” Pressley said. “Families in my district and throughout this country need relief now. I truly hope the Fed will listen to them and cut interest rates.”

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<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107368871-1707125203700-gettyimages-1244583255-ZAMBIA_COPPER-820x462.jpeg" alt="" class="wp-image-463267" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107368871-1707125203700-gettyimages-1244583255-ZAMBIA_COPPER-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107368871-1707125203700-gettyimages-1244583255-ZAMBIA_COPPER-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107368871-1707125203700-gettyimages-1244583255-ZAMBIA_COPPER-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107368871-1707125203700-gettyimages-1244583255-ZAMBIA_COPPER-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107368871-1707125203700-gettyimages-1244583255-ZAMBIA_COPPER.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Copper plates on wagons ready for onward shipping at the Mufulira refinery, operated by Mopani Copper Mines Plc, in Mufulira, Zambia, on Friday, May 6, 2022. Bloomberg | Bloomberg | Getty Images</figcaption></figure>



KoBold Metals, a mining startup backed by billionaires including Bill Gates and Jeff Bezos, is bullish on the discovery potential of some of the most sought-after energy transition metals.



It comes shortly after the Silicon Valley-based metals exploration company announced the rare discovery of a vast copper deposit in Zambia.



Josh Goldman, president of KoBold Metals, told CNBC that the firm’s investors were thrilled by the discovery, particularly at a time when the mining industry is struggling to keep pace with a metals-intensive energy transition.



“They are feeling delighted about this news because this is what we set out to do. The point of the company is to discover, find and develop mineral resources that we need for the energy transition,” Goldman said via videoconference.



“This is the first major win for the company, and it is among the most extraordinary ore bodies in the world,” he added.



KoBold Metals says it uses artificial intelligence to create a “treasure map” to help find new deposits of materials such as copper, lithium, cobalt and nickel. The company currently has more than 60 exploration-stage projects across several countries.



The startup’s investors include U.S. venture capital firm Andreessen Horowitz, Norwegian energy giant Equinor, the world’s largest mining group BHP, and Breakthrough Energy, a climate and technology fund founded by Bill Gates in 2015.



Breakthrough Energy’s backers include Bridgewater Associates’ Ray Dalio, Virgin Group’s Richard Branson, Alibaba’s Jack Ma and Amazon’s Jeff Bezos.



KoBold Metals is now focusing on advancing its Mingomba project in Zambia, which it expects to start producing copper within 10 years, and discovering the next trove of critical minerals, according to Goldman.



“The Central African copper belt is the part of the world where you can find things of this extraordinary grade. And that’s why we are there. The geology is extraordinary,” he said.



“It is not just that there haven’t been deposits like this. It’s that there are more to be found. Here is Mingomba — and then where is the next Mingomba after this? This is the part of the world and style of deposit where we can find resources of this scale and quality, and Zambia provides an operating environment that is really extraordinary,” he added.



Copper is in high demand due to its use in renewable energy infrastructure, energy storage systems and electric vehicles. Zambia is Africa’s second-largest copper producer after the Democratic Republic of the Congo.



<h2 class="wp-block-heading" id="h-the-potential-for-discovery-is-great"><a></a>‘The potential for discovery is great’</h2>



KoBold Metals said that most copper currently being mined has an ore grade of around 0.6%, whereas its Mingomba deposit has copper ore grades of more than 5%.



“That means that you have to mine a lot less rock in order to get the same amount of copper,” Goldman said.



“For a 0.5% ore deposit, you have to mine 200 kilograms of rock to get 1 kilogram of copper. For a 5% ore deposit, you have to mine 20 kilograms of rock to get 1 kilogram of copper. So, that’s a lot less Earth that you have to disturb, that’s a lot less waste that you create.”



Goldman said KoBold Metals plans to list shares publicly in the next three to four years.



“We do expect in due course that being a public company is likely going to be the best way to finance the business,” he added.



“The point of the company is to be serially successful in exploration — and to improve exploration success overall and to decrease the capital intensity of discovery,” Goldman said. “We think the potential for discovery is great. There is a lot more to be found in Zambia.”

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