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(Sharecast News) - Miners and the oil patch were again the strongest areas of the stock market on Wednesday.
But on this occasion it was precious metals miners that paced gains as futures prices for the yellow metal hit a fresh record high on COMEX at $2,321.80/oz.
Analysts at Bank of America attributed recent sharp gains to the purchases by central banks, especially by the People's Bank of China, Chinese retail buyers and options buying.
A dearth of attractive investment options in China had made gold "attractive", BofA said.
"We had previously proposed a $2,400/oz price estimate if the Fed cut rates in 1Q24; we commit to that estimate for this year, even if rate cuts come later," the analysts told clients in a research note.
Brent crude oil futures for next month delivery meanwhile added 0.64% on the ICE to reach $89.56 a barrel.
What factors lay behind the advance? Low oil inventories, output cuts from OPEC+, geopolitical frictions and strong economic growth.
All told, in a separate research note published on Wednesday, BofA upped its 2024 Brent price forecast to $86.
Brent prices would likely peak around $95 a barrel over the summer, they judged.
Banks also caught a bid, likely on the back of the increasing talk doing the rounds in markets to the effect that interest rates in the U.S. might stay higher for longer.
Top performing sectors so far today
Precious Metals and Mining 9,838.22 +2.10%
Personal Goods 16,815.50 +1.72%
Banks 3,880.36 +1.57%
Oil, Gas and Coal 9,214.85 +0.96%
Industrial Metals & Mining 6,476.13 +0.68%
Bottom performing sectors so far today
Non-life Insurance 3,659.10 -1.68%
Electricity 9,695.40 -1.27%
Personal Care, Drug and Grocery Stores 3,802.08 -1.03%
Beverages 23,060.22 -0.97%
Life Insurance 5,947.91 -0.90%
