18/01/2023
Can Gold Keep Rallying to All-Time Highs?
2023 is set to be a positive year for gold and silver
Weakening U.S. dollar, global economic slowdown, and the Fed easing the pace of rate hikes are all tailwinds for the precious metals Gold could rally to all-time highs this year
The turn of the year has been a walk in the park as far as the gold and silver markets are concerned. For the last two months, the precious metals have gained 7.5% and 12.1%, respectively.
Fundamentally, the rise in prices can be attributed to cooling inflation, which is grounds for the Fed to slow the pace of interest rate hikes, thus weakening the US dollar.
A strong dollar and rising bond yields have been the primary factors limiting the upside potential for gold and silver in recent years and keeping them in a consolidation phase. If this trend continues in the coming months, gold and silver could rally to all-time highs.
A global economic slowdown and the release of pent-up demand from China after the easing of pandemic restrictions should be tailwinds for gold and silver.
Analysts’ Consensus Favors Higher Gold Prices At the beginning of the year, forecasts of many different financial instruments are published. According to forecasts compiled by Goldsilver.com, the vast majority of gold and silver forecasts call for strong increases in 2023.
Such forecasts should be taken with a grain of salt, as we have seen similar predictions in previous years that were not ultimately realized.
This year, however, many factors indicate that the metals are likely to break out of the consolidation range. In this context, the main thing to watch out for is what the Fed will do at its upcoming meeting on Feb. 1.
The tone of the statement and Chairman Jerome Powell's consequent press conference would be key. In recent months we have witnessed relatively hawkish announcements, and therefore a possible change in tone will be a strong impetus for buyers.
