Many experts expect gold’s recent rally to continue in 2023. Alain Corbani, Portfolio Manager at the Gold & Precious Fund, told Kitco News that inflation, the U.S. dollar’s strength, and the Federal Funds rate are all drivers for gold’s performance. “All these three key data have started an inverted move. They stopped peaking and are heading south… We had a rebound in the price of gold because the data coming from the inflation front, the U.S. dollar weakening, and the interest rates going down, all triggered a new interest in the price of gold.” Yet, experts believe silver prices could reach nine-year highs this year, becoming a better performer than gold.
Kitco News/Cornelius Christian
Gold’s rally will continue into 2023, these 3 indicators reveal why – Alain Corbani
Despite its lackluster performance in 2022, gold has recently seen a surprise rally, with its price rising 16.9 percent over the past three months. This rally will continue into 2023, according to Alain Corbani, Portfolio Manager at the Gold & Precious Fund.
Corbani, who has three decades of experience in senior financial roles, including as a Director of RBC Capital Markets, said that three factors affect the gold price. These are inflation, the U.S. dollar’s strength, and the Federal Funds rate. Since they’re all either stalling or reversing, the gold price has been moving up, he said.
“All these three key data have started an inverted move,” he observed. “They stopped peaking and are heading south… We had a rebound in the price of gold because the data coming from the inflation front, the U.S. dollar weakening, and the interest rates going down, all triggered a new interest in the price of gold.”
You can read the full story, here.
CNBC/Lee Ying Shan
Silver prices could touch a 9-year high in 2023 — with a bigger upside than gold
Prices of silver could hit a nine-year high of $30 per ounce this year — possibly outpacing gold prices.
Insufficient supplies of silver as well as its tendency to be a better performer than gold in periods of high inflation are key drivers supporting the outlook, analysts told CNBC.
The last time spot silver touched $30 levels per ounce was in February 2013, according to closing price data from Refinitiv.
Continue reading Craig’s full prediction, here.
The ‘greatest tragedy’ would be if central banks don’t finish the job on inflation, Larry Summers says
Central banks not finishing what they have started in bringing inflation back to Earth would be the “greatest tragedy” for the global economy, according to former U.S. Treasury Secretary Larry Summers.
Central banks around the world have tightened monetary policy aggressively over the past year in a bid to get inflation under control, with annual consumer price increases running at multi-decade or even record highs across most major economies.
Economists are turning cautiously optimistic as recent data has suggested a slowdown in inflation, which may enable policymakers to ease and eventually stop their aggressive cycle of interest rate hikes.
You can read the full article here, here.