This is the big 2023 shocker that will get gold price to record highs this year - Goehring & Rozencwajg Fed gold inflation
Markets are looking for the Federal Reserve to wrap up its tightening cycle as inflation decelerates. But not all agree with this premise. Goehring & Rozencwajg sees inflation as a decade-long problem that will trigger new record-high prices in gold.
Gold will see this massive surge because the Fed is ending its aggressive tightening cycle, and the market is not pricing in inflation correctly."The Fed will stop raising rates, and then we'll get another big inflation problem. This is the decade of inflation. The Fed will stop raising rates and maybe even begin to lower them, but something else is going to happen that will kick off another spiral in inflationary psychology," Goehring described.
The 1970s is an excellent example of something like this already happening with the Fed, inflation and gold."This is a replay of the 1970s with some changes. After the Fed started to aggressively raise rates starting in 1973, gold prices corrected by 45%. When the Fed finally gave up a few years later, inflation on a year-over-year basis was still at 5%," Goehring noted."The same thing is happening now.
The second thing is for the markets to realize that inflation is not done."Back to the 1970s, when people saw that inflation was still a big problem, that's when the gold price began to go crazy after bottoming at the end of 1976," Goehring & Rozencwajg managing partner added."That's why this next move is going to be so exciting. There's no overhead resistance. I don't know how high gold can go. I wouldn't be surprised to see a $3,000 price this year.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Canucks: Bo Horvat traded to Islanders in multi-package dealCanucks receive forward Anthony Beauvillier, centre Aatu Raty and a protected 2023 first\u002Dround draft pick.
Read more »
McKinsey, affordability kick off lively first question period of 2023\u0027He\u0027s always had trouble defining what the middle class is, now we know his definition — it\u0027s his friends who make $1,500/hour.\u0027
Read more »
Levine: Coping with Canada — how three Afghan women greeted 2023Rokhshana, Zuhal and Tahmina are finally safe. But the sponsorship program that got them here faces tough changes in federal rules.
Read more »
Oil prices may have already found a floor for 2023: RBC analysts - BNN BloombergOil prices might have already hit a floor for the year, according to Royal Bank of Canada analysts Helima Croft and Michael Tran, who anticipate commodity prices will get a boost from China’s economic re-opening.
Read more »