The value of gold has risen to near-record levels this year and is likely to go even higher, according to the World Gold Council’s Joe Cavatoni. “Gold moves quickly on catalysts like the regional banking crisis, increased interest rates, geopolitical tensions and the debt ceiling. Gold is liquid, and these factors will take the precious metal even higher,” the market strategist said. “It’s simple, gold is a real asset. My house, my land, my gold,” Cavatoni added. The price of gold has gained around 12.4% this year, nearing the record $2,051.50 reached in August 2020. Central banks have added 228.4 tons of gold to global reserves over the first quarter—a milestone high for the period. “Thus the oldest and most traditional of assets, gold, is now a vehicle of central bank revolt against the dollar,” said Rockefeller International chair Ruchir Sharma. With the national debt currently at more than $31 trillion and a possible debt default as early as June 1, gold’s future seems even more promising.
Fox Business/Joe Toppe
Gold boom continues in 2023 nearing fresh record
While market volatility and a weakened U.S. dollar have made Wall Street even riskier this year, the value of gold has risen to near record levels and may keep shining.
“In 2023, traders want the long-term returns of gold,” Joe Cavatoni, a market strategist at the World Gold Council, told FOX Business following last year’s boom in oil.
“Gold moves quickly on catalysts like the regional banking crisis, increased interest rates, geopolitical tensions and the debt ceiling,” he added. “Gold is liquid, and these factors will take the precious metal even higher.”
The price of gold has gained around 12.4% year-to-date, approaching the record $2,051.50 reached in August 2020.
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Markets Insider/Filip De Mott
Central banks are boosting stockpiles of gold in their reserves amid a backlash against the dollar
Central banks around the world are boosting stockpiles of gold amid a growing backlash against the dollar.
In the first quarter, 228.4 tons of gold were added to global reserves, the World Gold Council reported on Friday. While that marks a 40% decline from the fourth quarter, it’s a 176% increase from a year ago.
It also marked a new record high for the first three months of any year, topping the prior first-quarter record, which was set in 2013, by 34%.
“This is all the more impressive considering it follows the record-breaking pace of demand last year,” the report said.
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Vox/Li Zhou & Dylan Matthews
9 questions about the debt ceiling, answered
This spring, Congress finds itself standing at a familiar precipice. Once again, if lawmakers don’t agree to suspend or raise the debt ceiling, the federal government risks defaulting on its loans, which would likely cause a massive economic crisis. To add to this urgency, Treasury Secretary Janet Yellen recently announced that a default could happen as early as June 1.
At issue is not whether the debt ceiling — a legal cap on how much the US can borrow — should be raised, but how. Democrats, led by President Joe Biden, insist that Congress pass a “clean” debt ceiling increase that does not include any trade-offs to guarantee its passage. House Republicans, meanwhile, are eager to pass spending cuts in exchange for approving any debt ceiling increase, with some saying they’re unwilling to compromise on this point.
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