Gold prices near all-time highs as Fed confirms recession – What’s next? [Video]
|Precious metal prices across the board have been on an absolute tear this quarter – racking up double digit gains as fears of a 2023 recession continue to bolster demand for safe-haven metals.
This week, Minutes from the Federal Reserve’s March Monetary Policy Meeting revealed policymakers for the first time predicted a “recession”, starting later this year – with a recovery by 2025 at the earliest.
The Minutes showed that several members of the Federal Open Market Committee were convinced that recessionary risks have been reignited following the crisis in the banking system – that led to the collapse of several prominent banks from Silicon Valley Bank to Signature Bank as well as the disorderly implosion of Credit Suisse. The turmoil has stoked fears that banks could be overwhelmed by waves of withdrawals or "bank runs," resulting in stricter lending conditions for borrowers – triggering a “global credit crunch” and ultimately a recession.
Following the release of the FOMC Meeting minutes, Gold prices came in striking distance of hitting all-time record highs reached in the summer of 2020, while Silver prices raced above $26 an ounce.
Gold has been on an unstoppable run, skyrocketing from the $1,800 level at the beginning of March to above $2,055 an ounce – notching up an impressive gain of over 14%, in the past month alone.
Gold prices have now risen for a second straight quarter in a row – up almost 29% from the November lows of $1,600 an ounce – scoring their biggest back-to-back quarterly gain ever in history – and the rally might not stop there!
The bullish momentum has also split over into Gold priced in other currencies such as British Pounds, Euros, Australian Dollars, Canadian Dollars and Japanese Yen – sending prices skyrocketing to all-time record highs.
Elsewhere in the Precious metal markets, another star performer this week was Platinum.
Platinum prices hit $1,070 an ounce on Thursday – bringing its quarterly gain to just under 23%. That’s Platinum’s biggest quarterly increase since the first quarter of 2008.
We're just over a quarter way into 2023 and it has already been a massive year Precious metals – but this could just be the beginning of the markets best year since the Global Financial Crisis in 2008.
Regardless of whatever situation unfolds from here on in 2023, there is no denying that the current macroeconomic backdrop is fuelling a “perfect storm” for Precious metal prices.
Whichever way you look at it, one thing is clear. Precious metals are everyone’s favourite trade right now and that trend is set to continue throughout the rest of the year. The explosive cocktail of events that is currently unfolding now ultimately positions Precious metals like Gold, Silver, and Platinum as one of the most lucrative and must-have asset classes in every portfolio.
Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:
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