Phil Carr
The Gold & Silver Club
Another day and another Commodity hits all-time record highs. That’s one of the most lucrative trends of the current financial climate that we find ourselves in right now!
A long list of the world’s most powerful Wall Street banks have described the current economic climate as “The Golden Age of Trading”.
This comes as no surprise, given today's highly macro-driven environment is fuelling a “perfect storm”, sending Commodity prices across the board from the metals, energies to agriculture skyrocketing to fresh multi-month and multi-year highs.
You certainly cannot talk about Commodities without mentioning Gold – And that’s because the precious metal has firmly positioned itself as one of the best performing asset classes of 2023.
On Monday, Gold prices notched up a new all-time record high for a second day in a row – with spot prices touching $2,150 an ounce amid growing expectations that the Federal Reserve is done with its aggressive interest rate hiking campaign and will deliver multiple rate cuts next year.
Gold has been on a parabolic run since the beginning of October – rallying from near the $1,800 level to a new all-time record high of $2,150 an ounce – scoring an impressive gain of over 16% in the space of two-months.
Monday’s new record high follows on from Friday’s blistering run that saw spot Gold prices touch $2,075 an ounce to surpass the yellow metals previous all-time high of $2,072 an ounce reached back in August 2020.
The big question now is how high will Gold prices go in December?
Right now, this is a traders' market and traders have already begun pricing in bigger-than-expected rate cuts in 2024. All and all, this ultimately suggests that we don't actually need the Fed to start cutting rates for Gold prices to move significantly higher and reach new record highs in the coming weeks and months ahead. There just needs to be the perception that it will happen.
According to a recent survey by the World Gold Council, almost 71% of global central banks intend to increase their Gold reserves in the next 12 months, as they continue to grow ever-more pessimistic about the U.S dollar as a reserve currency.
That in itself could put "a new floor in prices” and keep Gold elevated well above the key $2000 an ounce level for the foreseeable future.
Combine that with a Fed policy pivot in 2024 and the precious metals latest record high of $2,150 an ounce could just be the beginning of what is yet to come. Whichever way you look at it, one thing is clear. The stars appear to be aligning for Gold and the bullish momentum driving prices higher shows no signs of slowing down anytime soon!
Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:
Trading has large potential rewards, but also large potential risk and may not be suitable for all investors. The value of your investments and income may go down as well as up. You should not speculate with capital that you cannot afford to lose. Ensure you fully understand the risks and seek independent advice if necessary.
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