The forecasts always draw a wide range of possible outcomes and 2023 is no different with the lowest annual average forecast for the gold price at US$1,594 and the highest at US$2,025.
Federal Reserve rate hikes meant to quell inflation may ultimately have the opposite effect. Inflation occurs when the currency supply expands too rapidly as confidence...
Investors have been slower than a tank of turtles swimming in molasses when it comes to grasping reality, but they may be getting the message on inflation and the Fed’s fight ahead at last.
Gold bugs started 2023 with high hopes after the precious metals sector showed impressive relative strength versus paper assets in 2022.
So far, no good.
While gold’s recent pullback started violently, mid-upleg selloffs are perfectly normal. They are essential periodically to rebalance sentiment which keeps uplegs healthy, extending their gains. Spec gold-futures buying will return soon..
There are more red flags and crucial issues that are being overlooked by the Fed, such as the credit quality of the mortgage portfolios and borrowers’ profiles, shares of non-core assets, and off-balance sheet items.
