Gold’s Fluctuations and Market Dynamics: A Closer Look
Gold hits 12 month high, falls back slightly on profit taking
2023 could be a great year for investing in precious metals!. Get informed on why now is the time to invest and grow your portfolio. Gold futures have dominated the attention of market traders with continued strong gains. Some of the pull back may also be due to the upcoming FOMC next rate hike. They can only pause or raise, with the number being ¼% increase. The uncertainty of the short-term direction in price is also the current banking crisis that is spreading globally to include Credit Suisse, Switzerland.
Banking Crisis and Market Impact: Interplay of Global Factors
The US Federal Reserve and the Swiss National Bank allowed UBS AG, a long-time rival, to borrow up to 100 billion francs backed by a federal default guarantee. Currently the swiss franc is trading slightly above the US$, so the equivalent is about 107 billion US. A loan. With a federal default guarantee. By the way, UBS bought Credit Suisse for $3.2 billion in an all-stock purchase.
This is sounding very familiar and makes us wonder why these institutions are too big to fail or stand on their own in a free enterprise market place. They are publicly traded companies. The talk of protecting Switzerland’s reputation as a financial center? We will have to wait and see what other surprises are going to unwrap in the next few days and weeks. Expect a lot more big stories to unfold in the banking sector.
Market Movements and Dollar Influence: Gold’s Recent Performance
Dollar weakness added in the last 24 hrs added $10.50 of value to the price of gold followed by $21.40 of selling pressure resulting in the decline in price. Gold settled in at $1985 +- $5.00. 2022 was the year of the dollar. 2023 will be the year of the metals, we are expecting a pretty good year.
The price of gold will be above $2400 in 2023. This is not the supply and demand economics of 15 to 20 years ago that talked about production from the mines, jewelry, and derivatives. The price of precious metals will be driven by direct investment made by international banks, bullion dealers and refiners on behalf of their clients.
Investor Behavior and Precious Metals: Market Reactions to Shifting Trends
The retail investor looking to diversify his portfolio or IRA will move into precious metals in a big way once the reality of high inflation and weak equities sets in. There is still a lot of clouded thinking regarding the stock market and hiding behind cash. When you feel inflation eating away at your purchasing power and your actual savings there will be a big push into precious metals. Human nature will keep people on the sidelines at $2000 and ounce and loving it at $2300 an ounce, we see it all the time.
25-year gold price chart. Red arrows show the gold price often surges higher when recessions occur or when interest rates fall
Source: Trading Economics
The U.S. dollar Index 25-year chart
Source: Trading Economics
The time to be bold and take some control back is absolutely now, today. With all the factors working against us, inflation, global banking crisis, rising interest rates, government out of control spending, political and social divisions. We see a strong price target for this year.
Gold up 20 to 25 % . Call it $2400 to $2500
Delve Into Gold Investments
Why Gold and Silver:
In the standard procedure, you complete an account application (whether online or on paper), and the account setup typically takes place within 24 to 48 hours after you complete and submit the application.
How to Buy and Store Gold Bars Safely:
Understand the best practices for purchasing and securely storing gold bars as part of your investment strategy.
Gold Bars vs. Gold Coins: Which is the Best Investment?:
Compare the advantages of gold bars and gold coins to determine which option aligns better with your investment goals.
Do You Know About the Monster Box?
Uncover the secrets of the Monster Box—an exceptional addition to your precious metals investment. Learn how this unique and fantastic collection offers unparalleled advantages in diversification and storage.
Investing in Gold and Silver: Future Outlook
Discover the potential of investing in gold and silver and how they can shape your financial future. Explore the benefits of these precious metals as safe-haven assets and learn how to safeguard your investments during economic uncertainties.
If you are interested in exploring the opportunities that gold investment presents or have any inquiries, Prudential Metals Group is here to assist you.
Feel free to contact us for more information and personalized guidance to make a sound investment decision.
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