Ole Hansen, a commodity strategist at Denmark’s Saxo Bank, says that if markets realize that global inflation will remain hot despite monetary tightening, gold prices could reach as high as $4,000 in 2023. In other news, as Americans await the Fed’s next move, most experts expect the Fed to announce another interest rate hike, even though some believe that it’s not needed. “There is no need at this point to continue hiking rates, but, of course, they [the Fed] will,” RBC Capital Markets economist Tom Porcelli said.
Great Speculations via Forbes/Frank Holmes
Gold Has The Potential To Hit $3,000 Or $4,000 An Ounce In 2023
Will 2023 be the year that gold hits $3,000 an ounce?
Ole Hansen, a respected commodity strategist at Denmark’s Saxo Bank, says it’s possible once markets realize that global inflation will remain hot despite monetary tightening. I believe, as I’ve said before, that gold could climb as high as $4,000.
Hansen notes three other factors that could help push the metal to new record highs next year. One, an increasing “war economy mentality” could discourage central banks from holding foreign exchange reserves in the name of self-reliance, which would favor gold. Two, governments will continue to drive up deficit spending on ambitious projects such as the energy transition. And three, a potential global recession in 2023 would prompt central banks to open the liquidity spouts.
You can read the full story, here.
Ahead of Herd via GoldSeek/Richard Mills
The Mother of all Economic Crises
Economist Nouriel Roubini believes the world economy is lurching toward an unprecedented confluence of economic, financial, and debt crises, following the explosion of deficits, borrowing, and leverage in recent decades.
In his latest commentary, titled ‘The Unavoidable Crash’, Roubini writes:
After years of ultra-loose fiscal, monetary, and credit policies and the onset of major negative supply shocks, stagflationary pressures are now putting the squeeze on a massive mountain of public- and private-sector debt. The mother of all economic crises looms, and there will be little that policymakers can do about it.
Central to his thesis is the mountain of private and public debt that has been accumulating. Private debt includes corporations and households (mortgages, credit cards, car loans, etc.) while public debt comprises government bonds and other formal liabilities, as well as implicit debts such as pay-as-you-go pension schemes.
You can read the full story, here.
Here’s everything the Federal Reserve is expected to do Wednesday
Call it a sign of the times where a half percentage point interest rate increase from the Federal Reserve is considered looser monetary policy.
Prior to this year, the Fed hadn’t boosted benchmark borrowing rates by more than a quarter-point at a time in 22 years. In 2022, they’ve done it four times — three-quarters of a point each — with Wednesday’s widely anticipated 0.5 percentage point move to be the fifth.
A pitched battle against inflation has turned policy norms on their head. Investors have now become conditioned to an aggressive central bank, so any step down from the recent jumbo moves will be seen as relative easing.
Wednesday’s meeting of the rate-setting Federal Open Market Committee will bring an assortment of moves to chew on. It will be as much about the current rate increase as it will what the Fed plans ahead and where it sees the economy heading.
Here’s a quick look at the multiple variables that will play into the outcome:
Read the full story, here.