Since the midterm election, gold prices have been ticking up. Bank of America says the yellow metal has a solid path to $2,000, but it may not be until Q3 of 2023. The bank also predicts $25 silver around that same time. In other news, S&P Global Ratings economist Beth Ann Bovino is warning that a recession akin to that of 1969–1970 is coming to the U.S. next year.
Kitco News/Neils Christensen
Gold has a path to $2,000 and silver to $25 in the second half of 2023 – Bank of America
Precious metals investors will need to be a little patient as gold and silver could see challenging headwinds in the first half of the new year, according to Bank of America’s 2023 outlook.
However, gold still has a solid path to $2,000 by the end of the year, according to the bank’s official forecasts.
In a webinar presentation Wednesday, Michael Widmer, commodity strategist for Bank of America, said that while he is bullish on gold next year, he is not expecting to see higher prices until at least the second quarter of the year.
You can read the full story, here.
MarketWatch via Akt.io
A recession akin to 1969-1970 awaits U.S. next year, economist warns
Brace for a recession next year. That is the word of warning from S&P Global Ratings economist Beth Ann Bovino, in a post-Thanksgiving weekend report on Monday. “ ‘GDP will decline by 0.8%, a mild recession in line with the 1969/1970 recession.’ ” — S&P Global Ratings As with many prognosticators inside and outside of Wall Street, S&P sees the chance that the U.S. avoids a recession as “dimming,” as the Federal Reserve continues to pursue its strategy of attempting to squelch rising inflationary pressures by raising interest rates.
The U.S. central bank’s goal is simple: stamp out inflation, with measures such as the consumer-price index putting in numbers of around 8% for several months in a row this year. The Fed views inflation for a healthy economy at 2%, and readings above that suggest that the economy is running hot. Lifting interest rates are one of the primary ways the Fed can cool the economy, by making goods and services more expensive. That strategy is inflicting pain — and risks recession — for consumers and investors who have enjoyed more than a decade of cheap money to buy houses, cars and other assets such as stocks and bitcoin BTCUSD, -2.10%.
You can keep reading, here.
Fox Business/Peter Kasperowicz
CBO’s bleak 2023 outlook: High inflation, slower growth, larger budget deficit
Higher than expected inflation and elevated interest rates will lead to slow economic growth, reduced purchasing power for families and larger budget deficits for the federal government in 2023 and will likely lead to at least one quarter of negative growth next year, the Congressional Budget Office predicted this week.
The CBO said in a Nov. 30 letter to Sen. Steve Daines, R-Mont., that its most recent projections are worse than what it published in May, when the Federal Reserve had just begun to raise rates to tame inflation levels that have not been seen in 40 years.
“Higher interest rates, higher inflation, and slower economic growth lead to less purchasing power for households and increased deficits for the federal government,” the CBO said.
Read the full story, here.