Jan Nieuwenhuijs, a gold market analyst, has predicted a new multi-year bull market for gold. According to different factors, including the low percentage of gold as part of the global international reserves, and the size of the equity market, gold prices might be preparing to rise, putting prices of ,000 per ounce in the realm […]
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Silver Left Behind as Gold Claims the Spotlight With Record Price Spike to $2,233 per Ounce
This week, the value of gold soared to an unprecedented peak, hitting ,233 per troy ounce as of March 29. In contrast, silver has not exhibited the same level of brilliance, with its value standing at .97 per troy ounce, a significant 91% decline from its all-time high of .91 on March 31, 2011. Gold […]
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Analysts See Gold Reaching $2,600 per Ounce Amid Strong Market Demand
While bitcoin experienced a 12% decrease following its all-time high last week, gold has shown relative stability over the past five days, with only a slight 1% decline in the same period. In a similar vein to crypto enthusiasts, advocates for gold predict that the metal will continue its upward trajectory, potentially reaching the ,600 […]
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Gold Nears Record High Amid Global Uncertainty, Surges to $2,071 an Ounce
The price of an ounce of pure gold has approached its highest historical level this weekend, reaching ,071 per ounce. This peak nearly matches its record three years ago on August 7, 2020, when during the Covid-19 pandemic, spot gold prices soared to an unprecedented high of ,072.50 per ounce.
Gold Flirts With Lifetime Price High Amid Economic Unrest
Amid U.S. equities ending Friday on a positive note and a surge in the crypto economy’s value, the cost of a single ounce of gold is on the verge of surpassing its historical peak. Currently, gold is trading at ,071.88 per ounce, just a fractional 0.029% below its all-time high set on August 7, 2020.
During the height of the Covid-pandemic’s uncertainty and ensuing lockdowns in 2020, concerns about the economy’s future mounted. On August 7 of that year, gold reached its intraday zenith, hitting ,072.50 per ounce.
Today, as the global economy grapples with ongoing uncertainty, gold prices are mirroring these concerns, drawing investors to this traditional safe-haven asset. While the intensity of the Covid-19 crisis has diminished, China is now grappling with a surge in mysterious respiratory diseases, including mycoplasma pneumonia.
This alarming increase in cases has led the World Health Organization (WHO) to request more details about the outbreak. Moreover, the ongoing international tensions, including the conflicts between Russia and Ukraine and between Israel and Hamas, have heightened global economic uncertainty, further enhancing the appeal of gold as a valuable asset.
Furthermore, in the U.S., the Federal Reserve’s strategy of increasing interest rates to tackle inflation has resulted in higher interest rates and market volatility, thereby heightening fears of a recession. Moreover, yield curve metrics, particularly the comparison between the 10-year and 3-month Treasury rates, a traditionally accurate forecaster of recessions, suggest a substantial likelihood of a recession occurring within the next year.
A combination of unpredictable events, geopolitical unrest, and global economic slowdowns have propelled gold prices to their current levels. This surge is also supported by significant demand for gold from central banks globally. While gold has seen a 1.73% increase in the last 24 hours, silver has not reached its historical peak and has only experienced a modest 0.65% rise during the same period.
Presently, silver’s price is markedly lower than its April 25, 2011, high of per ounce. To surpass its previous peak, silver would need to witness a 92% increase. Technical analyst Gary Wagner opines that the “rally in gold and silver is far from over.” Wagner acknowledges that the present economic conditions will favor both metals, but he predicts that “it is gold that will continue to gain value at a much greater pace than silver.”
What do you think about gold’s price rise? Share your thoughts and opinions about this subject in the comments section below.
Bank of America Strategist Predicts Gold Could Reach $2,500 per Ounce in 2023
A Bank of America (BOFA) commodity strategist has postulated that gold, should it continue to flourish in 2023, could pave the way for a climb to ,500 per ounce. Presently priced at ,983 per unit, the precious metal remains just shy of the ,000 threshold. However, if it were to achieve the projected ,500 target, its value would need to rise by more than 26% against the U.S. dollar.
‘Non-Commercial Purchases Do Not Need to Increase Materially to Justify Gold Hitting ,500,’ Says BOFA Commodity Strategist
In 2023 thus far, gold has demonstrated admirable performance, with its price soaring by over 19% in the span of six months. The past 30 days, in particular, have seen a noteworthy 1.33% spike in the price of this treasured metal. Furthermore, a recently-released memo from a BOFA commodity strategist opines that, to realize the envisioned ,500 per ounce milestone, gold need not scale much further in value.
“Bottom line: non-commercial purchases do not need to increase materially to justify gold hitting ,500/oz this year,” the BOFA strategist stated.”Inflows into ETFs will be critical and dynamics in assets under management will be a crucial indicator confirming whether price gains can be sustained.”
The note comes at a time when central banks have been purchasing large amounts of gold in 2023. China, for one, boosted its gold stockpile by 18 tons in March, propelling its national reserve’s holdings of the precious metal to 2,068 tons. As reported by the World Gold Council, the trend of central banks’ gold acquisitions, which started in 2022, has continued into 2023. Additionally, statistics from Google Trends reveal that during the first week of April 2023, the search query “how to buy gold” garnered a perfect score of 100.
Despite a note from BOFA senior economist Aditya Bhave, released in early March 2023, which he predicted the Fed would persist in raising rates, the subsequent report by the bank’s commodity strategist projected an end to rate hikes. “Influenced by the recent banking turmoil, markets are pricing imminent rate cuts,” the strategist opined this week. “At the same time, core inflation has been sticky and elevated price pressures, for example in shelter, highlight the risk of second round effects.”
The BOFA strategist added:
This confirms our long-held view: central banks have no silver bullet for fighting inflation and this should ultimately bring investors back to the market. The end of the hiking cycle will be critical for the yellow metal.
With the next Federal Open Market Committee (FOMC) decision less than a week away, investors find themselves grappling with uncertainty as to whether the Fed will hike rates or not. The CME Group Fedwatch tool reveals that 84.5% of the market is anticipating a 25 basis point rise, while 15.5% believe that the Fed will hold rates steady, with no increase in May. The U.S. central bank’s possible reversal of its hawkish monetary policy could be influenced by the sustained upheaval in the country’s banking industry.
In particular, market analysts have been closely monitoring the recent turbulence at First Republic Bank, the nation’s 14th largest bank, which experienced a drastic 50% plunge in value during a single trading session followed by a 30% decline the following day before trading was halted. While the stock has since rebounded, gaining 13% on April 27, 2023, First Republic Bank’s stock has plummeted by 94% over the past six months. In a recent announcement, the bank attributed the massive outflow of 0 billion from its coffers in March to customer withdrawals.
What do you think about the potential rise of gold to ,500 per ounce in 2023? Do you believe central banks’ gold acquisitions and inflation concerns will continue to fuel its growth? Share your thoughts in the comments section below.
Citi Analysts Predict ‘Near-Perfect Conditions’ for Silver’s Ongoing Bull Market; Experts Suggest $30 an Ounce a Possibility
The price of silver fell 2.85% against the U.S. dollar last week. However, taking a broader perspective, the precious metal has made significant gains this year. Over the past six months, silver has risen more than 29% against the greenback, and as of April 22, 2023, it was hovering around .08 per ounce. Citi analysts recently projected that silver prices could increase to per ounce this year, citing “near-perfect conditions for the ongoing bull market” in silver markets.
Analysts See Potential for Silver Market to Take Off
Although silver has experienced a recent decline, the precious metal has made significant gains in 2023. Last week, Citi analysts, led by Maximilian Layton, told Forbes writer Jonathan Ponciano that the U.S. dollar still has room to weaken. In a recent note, Layton and the Citi analysts stated that “precious metals, and especially silver, [have] near-perfect conditions for the ongoing bull market.” They also projected that silver could increase by 18% to around per ounce in the coming months.
Additionally, the Citi analysts noted a “distinct possibility” of per ounce in 6 to 12 months. In recent times, several market researchers and economic forecasters have predicted a bullish year for silver. Despite a slight drop this week, Fxempire analyst Christopher Lewis emphasized on Thursday that “silver continues to threaten resistance.” Lewis added, “On the upside, if we were to take out the recent high, then we could go looking to the level, which also has been important.”
He went on to say, “If we take that out, then it’s possible that we may enter a phase where the silver market takes off like it did a couple of times in the past, trying to get all the way to the level.” In a Jan. 30 article on Seeking Alpha, author Anna Sokolidou suggested that silver could reach this year, citing Nicky Shiels, head of metals strategy and macro for MKS Pamp Group. According to Sokolidou, Shiels’ “bullish case” predicts that one ounce of silver could reach the price of or more.
Janie Simpson, managing director at ABC Bullion, also shared this optimistic outlook for silver. “Silver has historically delivered gains of close to 20% per annum in years inflation is high. Given that track record, and how cheap silver remains relative to gold, it wouldn’t surprise to see silver head towards per ounce this year, though that will likely offer significant resistance,” Janie Simpson told CNBC at the end of January.
In Kitco’s 2023 Outlook, author Neils Christensen reported that retail investors expect to see silver prices rally more than 50% in 2023. At the end of 2022, Kitco surveyed 1,482 investors about the price of silver by the end of 2023. “On average, retail investors see silver prices rising to an ounce,” Christensen reported. A retail investor from Middleville, Michigan, told Kitco that silver prices could double this year and surpass per ounce. The Michigan resident believes that the industrial metal will also serve as a hedge against inflation and the stock market.
Do you think silver will continue its upward trajectory and reach per ounce this year, or will it face significant resistance and fall short of expectations? Share your thoughts in the comments below.
Silver Proponent Predicts Medium-to-Long-Term Prices of $125 Per Ounce Thanks to Auto Industry
Silver prices have been hovering just below the per troy ounce mark over the last 24 hours, after jumping above the range in mid-January. While long-term and modest forecasts expect silver to hit by 2025 and by 2027, Keith Neumeyer, CEO of First Majestic Silver, thinks medium to long-term, silver could reach 5 per ounce, thanks to the automobile industry.
Keith Neumeyer Highlights Silver’s Role in the Growing Demand for Renewable Energy and Electric Vehicles
The precious metal silver is down more than 12% against the U.S. dollar since mid-January when it reached per troy ounce. Still, six-month statistics show an ounce of silver is 14% higher than it was on September 6, 2022. According to the forecast on coinpriceforecast.com recorded on March 6, 2023, silver’s price will “hit by the middle of 2025 and then by the end of 2026.”
The prediction also expects silver to rise to “ within the year of 2028, in 2030, and in 2032.” While that’s modest growth over the next decade, silver proponent and CEO of First Majestic Silver, Keith Neumeyer, has a more bullish outlook.
Neumeyer spoke with Michelle Makori, lead anchor and editor-in-chief at Kitco News, at the BMO Global Metals, Mining, & Critical Minerals Conference. The silver proponent’s outlook for 2023 is roughly per ounce, but his medium-to-long-term outlook is 5 per ounce.
He told Makori that this year was the first year he noticed auto manufacturers at the conference. Neumeyer opined that car manufacturers “aren’t really aware of the supply-demand fundamentals of the metal.” He also stressed that Tesla CEO Elon Musk should be watching this space closely.
“I think as they educate themselves and actually learn the challenges for the silver industry to supply the automotive sector, they will start looking at this industry a lot more aggressively… If I were Elon Musk, I’d be very active in this area,” Neumeyer said.
Neumeyer emphasized that silver is needed to create solar panels and car batteries, and he believes that this consumption will only continue to grow. During his conversation with Makori, Neumeyer stated that he has been predicting for a couple of years that silver prices will reach triple digits in the medium-to-long term, and he thinks that reaching 5 to 0 per ounce is a reasonable expectation.
He also believes that the “stars are aligning” for this prediction to become a reality and that we are now closer to it than we were a couple of years ago. Neumeyer informed the news anchor that the estimated consumption of silver in the solar panel industry is 160 million ounces for 2023. He added that the electrical automotive sector is projected to consume just under 100 million ounces of silver.
What do you think about Neumeyer’s silver forecast? Let us know what you think about this subject in the comments section below.