Experts say precious metals have reached a breakout point and are on the verge of another major move. Northstar & Badcharts analysts and founders say gold is poised to reach at least $2,400 by 2023. In other news, newly released Fed minutes show that officials think additional, and more aggressive, interest rate hikes will be coming until they see that inflation has cooled “considerably.”

Kitco News/Cornelius Christian
$2,400 gold will come by 2023, Bitcoin falling to $10k is ‘more probable’ than a rally

Precious metals and Bitcoin have reached pivotal “breakout” points and are on the verge of another major move, according to Patrick Karim and Kevin Wadsworth, technical analysts and founders of Northstar & Badcharts.

Karim and Wadsworth spoke with David Lin, Anchor for Kitco News.

For Bitcoin, the odds are more probable that another move downwards happens before a substantial bull rally takes place, Wadsworth said.

“[It is more] probable that [Bitcoin] is going to break to the downside and head down towards that $10,000 to $12,000 target,” Wadsworth said. “I would assess that the odds that around 70% to 80% likely that we break down to see these lower lows and around 20% to 30% of moving to the upside,” he said.

You can keep reading, here.

Forbes/Wayne Duggan and Farran Powell
Is Gold an Inflation Hedge?

People have owned gold as a store of value for thousands of years. It also has real-world uses in jewelry and electronics, which provides even more tangible value. And unlike fiat currencies, there is a relatively limited supply of gold.

For these reasons, gold has long been considered a safe-haven investment and a hedge against inflation. Trouble is, gold has a mixed record when it comes to whether it can actually provide a good hedge against inflation.

In mid-2022, measures of U.S. inflation were hitting multi-decade highs. The last time the U.S. experienced out-of-control inflation was the 1970s and early 1980s. Looking back at this period provides insight into why investors think of gold as a hedge against inflation.

Oil price shocks and energy shortages drove average annual inflation in the U.S. to around 8.8% from 1973 to 1979. During those six years, gold won over many investors as a top inflation hedge since the yellow metal generated an impressive 35% annualized return.

Continue reading, here.

Fox Business/Megan Henney
Fed officials anticipate ‘significant’ interest rate hikes until inflation eases, minutes show

Federal Reserve officials indicated at their July meeting that additional interest rate hikes are necessary in coming months until policymakers see evidence that inflation has cooled “considerably.”

Minutes from the U.S. central bank’s July 26-27 meeting released on Wednesday showed that policymakers remain committed to raising interest rates as high as necessary in order to bring consumer prices closer to their 2% goal – even if it that means slower economic growth and less consumer spending.

“With inflation remaining well above the Committee’s objective, participants judged that moving to a restrictive stance of policy was required to meet the Committee’s legislative mandate to promote maximum employment and price stability,” the minutes said.

You can keep reading, here.

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