Will 2023 be the year when Gold prices hit $3,000 an ounce? [Video]
|It is often said that data is the new Oil. However, in the case of 2023, data is definitely the new Gold.
Google searches for the phrase “How To Trade Gold” are now at their highest level on record ever and that trend shows no signs of slowing down anytime soon!
Literally days after that stat made headlines – Gold blasted through all-time highs of $2,082 an ounce, breaking its previous record of $2,075 an ounce reached in August 2020.
Since the final quarter of 2022, Gold prices have been on a parabolic run – taking their gains to over 32% from the November lows of $1,600 an ounce.
And the rally might not stop there!
In this year of "unthinkable macro surprises”, the precious metal appears well-positioned for another explosive run that could carry it to new all-time record-breaking highs.
While that prediction sounds bold, it is not that far-fetched when you consider the full magnitude of macro events that are currently unfolding from an on-going global banking crisis, uncertainties over U.S debt ceiling negotiations and signals from the Federal Reserve that the hiking cycle is near the end.
In addition, when you combine those factors with the growing de-dollarization trend, rising global recession risks and Central banks scooping up Gold at the fastest pace even seen – then it’s not impossible to see why the macroeconomic backdrop for Gold is looking more bullish than ever before.
One of the biggest catalysts for higher Gold prices this month is unquestionably the looming risks of a U.S debt default.
Right now, the U.S is $31.4 trillion in debt. This staggering amount is in the spotlight because the U.S government will not be able to pay its bills if Congress cannot agree to raise the debt ceiling by June 1.
According to U.S Treasury secretary Janet Yellen “the impact of a U.S debt default on the global economy could rival the 2008 financial crash”.
Interestingly, the U.S government has been in the situation before.
Back in 2011, the U.S. hit its debt ceiling on 16th May and after a long-stand political off – passed legislation to raise the limit on 1st August. It was during this exact period when Gold prices previously reached an all-time record, while Silver price rocketed to $50 an ounce.
If history is anything to go by, then a similar scenario this time around could very easily slingshot Gold prices to $3,000 an ounce.
Whichever way you look at it, one thing is clear – it’s only a matter of time before Gold prices reach a new all-time record. The big question now is how high will prices go?
Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:
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