Gold prices are continuing to rise as concerns surrounding stagflation, the Ukraine war, and possible aggressive Fed rate hikes rise. Singapore’s United Overseas Bank now sees the yellow metal gold trading at $2,100 an ounce in Q2, $2,150 an ounce in Q3, and $2,200 an ounce in Q4. “The ongoing rise in energy and commodities prices will be keenly felt in economies across the world in the months ahead as inflation rise further and growth slows down concurrently … There is now an increasing fear of stagflation by global investors and safe-haven inflows to gold now take over as a key dominant driver,” said UOB head of markets strategy, Heng Koon How. In other news, a senior analyst for the Morgan Report said the biggest financial paradigm shift in our lives is underway, and there’s no turning back.
Kitco News/Anna Golubova
Gold price to end the year at $2,200 as stagflation fears take hold, says UOB
When it comes to the gold price action, stagflation fears outweigh the expectations of a more aggressive Federal Reserve, said Singapore’s United Overseas Bank (UOB). The bank’s latest outlook on the precious metal also comes with new price projections for the year.
The key drivers for gold will continue to be inflation fears, slower economic growth, and increased demand for safe-havens.
“This mounting stagflation fear, coupled with strong safe haven in-flows, have now taken over as the dominant drivers for gold price, muting the negative impact from the anticipated rate hikes from the U.S. Federal Reserve,” said UOB head of markets strategy Heng Koon How.
You can read the full story, here.
Reuters via CNBC
Gold rises on Ukraine concerns, gains curbed by rate hike bets
Gold rose on Thursday as safe-haven support from the Russian invasion of Ukraine was countered by signs that U.S. Federal Reserve officials could act more aggressively to tame inflation.
Spot gold rose 0.1% to $1,945.92 per ounce. U.S. gold futures rose 0.8% to $1,953.50.
“Gold’s upside is severely capped by the Fed’s aggressive bias towards rate hikes, though the precious metal remains well-supported by persistent fears over the Russia-Ukraine war’s global implications,” said Han Tan, chief market analyst at Exinity.
Gold is sensitive to rising interest rates, which increase the opportunity cost of holding it.
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A Paradigm Shift in Global Finance, Gold, Silver, Uranium, and Grains Is Now Underway
The biggest financial paradigm shift in our lives is underway, and there’s no turning back. No one knows exactly what it’s going to look like going forward nor how we’ll be able to get there.
A working definition of “paradigm” taken from dictionary.com is that it is “a framework containing the basic assumptions, ways of thinking and methodology that are commonly accepted by members of “an operating system.” Think global to local and buy/ sell/exchange finance.
When a new paradigm starts being formed, an original set of rules has to be put together in order to operate successfully within it. Most of the rules that worked in the old paradigm(s) no longer apply. (An example would be trying to communicate with business associates and family by sending letters instead of email via the internet.)
During the new system’s “early days,” everyone using it is pretty much in the same boat as we all attempt to figure out what the rules are, how to best apply them, and what the results might be. Getting it right will hopefully enable us to be safer and more successful in our personal and professional lives.
You can read the full article, here.