Leigh Goehring, managing partner of Goehring & Rozencwajg, expects gold to hit record highs this year. “Right now, when inflation increases, the Fed raises rates, and people sell gold… I think the psychology is going to switch to inflation going up, the Fed not raising rates or lagging behind, and inflation becoming a real problem,” he said. When people come to this realization, Goehring is sure they will turn to gold. Just after the Fed’s recent quarter-point interest rate increase, Chair Jerome Powell said that disinflation was “going to take some time.” Quickly following Powell’s news conference, gold hit a nine-month high.

Kitco News/Anna Golubova
This is the big 2023 shocker that will get gold price to record highs this year – Goehring & Rozencwajg

Markets are looking for the Federal Reserve to wrap up its tightening cycle as inflation decelerates. But not all agree with this premise. Goehring & Rozencwajg sees inflation as a decade-long problem that will trigger new record-high prices in gold.

Gold will play a massive catch-up game to the commodity complex this year as prices rise above $2,050 an ounce, Goehring & Rozencwajg managing partner Leigh Goehring told Kitco News. “Gold is going to hit record highs this year. In August of 2020, we peaked at $2,050, and then again in March 2022. This year we’re going to break through the all-time high,” Goehring said. “It’s time for people to want to be bullish on gold. Since 2020, the average oil indices are up 200%, and the GDX at one point was down almost 35% from its 2020 peak.”

Continue reading, here.

Reuters via Yahoo! Finance/Ann Saphir and Lindsay Dunsmuir
Fed’s Powell says no rate cuts this year, and markets hear it differently

Federal Reserve Chair Jerome Powell had a clear message on Wednesday: as “gratifying” as it is that inflation has begun to slow, the central bank is nowhere near to reversing course or declaring victory.

“It’s going to take some time” for disinflation to spread through the economy, Powell said in a news conference following the Fed’s latest quarter-point interest rate increase. He said he expects a couple more rate hikes still to go, and, “given our outlook, I just I don’t see us cutting rates this year.”

Investors ignored him, keeping bets on just one more rate hike ahead and piling further into bets that rates will be lower by year’s end than they are now.

You can read the full article, here.

Reuters via CNBC
Gold hits more than 9-month high after Powell strikes dovish tone

Gold prices extended gains on Thursday to touch their highest in more than nine months, after the Federal Reserve raised interest rates by an expected 25 basis points and Chair Jerome Powell’s comments were read as dovish by the market.

Spot gold was up 0.2% at $1,953.28 per ounce after hitting its highest since April 2022 earlier in the session. U.S. gold futures
rose 1.3% to $1,968.30.

The Fed delivered a quarter-percentage-point rate increase on Wednesday after a year of larger hikes. However, Powell warned of further monetary policy tightening while noting the progress on disinflation, which he said was in its early stages.

You can read the full article, here.

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