On January 13, 2023, Reuters reported that “gold prices scaled over an eight-month peak… holding above the key pivot of $1,900/oz.” This latest rally in gold prices may continue, pushing the precious metal’s price to record highs in 2023.
Gold prices began rallying before the year started.
On January 4, 2023, Fox Business reported that “precious metals like silver and gold are positioning themselves as a safe haven for traders in the coming year.” Between November 3, 2022, and January 12, 2023, the price of gold rose more than 15%, or by about $200/oz.
The factors supporting gold’s rally may push prices higher over the long term.
Analysts say recession risks, economic volatility, and expectations of slowing interest rate hikes are fueling purchases of gold. Krishan Gopaul, senior analyst for the EMEA region at the World Gold Council, told CNN, “This year, the global economy is facing a serious slowdown and, in many countries, a recession. That could make gold more appealing now that yields and the dollar are less of a negative factor.”
David Neuhauser, founder and chief investment officer at Livermore Partners, told CNBC on January 10, 2023, that he expects the recent momentum for gold to continue. Neuhauser said, “I think as you look forward, you start to look around and think ‘Where is the safest place for [my wealth] in terms of assets?’ and the only place really to go as an alternative now is gold, in terms of knowing that you are not going to see that debasement of your assets.”
Analysts predict higher gold prices.
According to Barron’s, former U.S. Mint Director and U.S. Money Reserve Senior IRA Strategist Edmund C. Moy believes signs point to higher gold prices this year, based on his experience at the Mint during the 2008-2009 financial crisis. Moy says he wouldn’t be surprised if the price of gold tops $2,100/oz., exceeding previous price records.
During a January 10, 2023, appearance on the Fox Business program “The Claman Countdown,” J.C. Parets, chief analyst and founder of All Star Charts, said if gold prices rise above $2,000/oz., $3,000/oz. prices may soon “come quick,” and gold could reach as high as $5,000/oz. or even $10,000/oz. He further stated, “The potential profit is unlimited if we’re breaking out to new all-time highs.”
The current rally in gold prices may be set to surge even higher based on factors ranging from U.S. monetary policy to economic volatility. Consumers who allocate gold into their portfolios now may benefit in the long run.
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