In a recent report, Goldman Sachs analysts explained four possible scenarios for our economy and how each will impact gold. In one instance, they see a 30% chance of a recession with substantial rate cuts to zero by 2025, which could cause gold prices to spike to $2,250 an ounce. In other news, Well Fargo believes that current markets “lack any sense at all.” “Investors are trying to make sense of the financial markets, which at times, seem to lack any sense at all,” global market strategist Scott Wren said in a note on Wednesday. “We feel this pattern of market behavior is unlikely to change in near term and is not uncommon during periods of economic uncertainty.”

Kitco News/Neils Christensen
Goldman Sachs sees a scenario where gold prices rally sharply to $2,250 by 2025

The Federal Reserve’s commitment to slow the economy to cool down rising inflation continues to push the U.S. economy closer to a recession.

Tuesday, in an interview with CNBC, David Soloman, CEO of Goldman Sachs, said that this is a time to be cautious as there is a good chance of a recession. The comment comes as the investment bank sees potential upside for gold in a recessionary environment.

In a report published last week, commodity analysts at Goldman Sachs said that despite gold’s volatile year, its upside potential is greater than the downside risks, even as uncertainty dominates the marketplace.

You can read the full story, here.

Business Insider/Jennifer Sor
Markets right now ‘lack any sense at all’, and nothing will change until the inflation picture becomes clearer, Wells Fargo says

Markets these days “lack any sense at all,” and that won’t change until the inflation picture becomes clearer, Wells Fargo said in a note Thursday.

The bank pointed to the recent volatility in the stock market, which has rebounded on positive earnings reports after plunging earlier this month when inflation clocked in above expectations. Those swings have Wall Street divided over the what the future holds, with some bulls calling for a 37% rally by year-end, and others ringing alarms for an imminent financial disaster.

“Investors are trying to make sense of the financial markets, which at times, seem to lack any sense at all,” global market strategist Scott Wren said in a note on Wednesday. “We feel this pattern of market behavior is unlikely to change in near term and is not uncommon during periods of economic uncertainty.”

You can keep reading, here.

CNBC/Jeff Cox
Elon Musk says a global recession could last until the spring of 2024

Tesla founder and CEO Elon Musk thinks the global economic decline can last for another year and a half.

In a Twitter exchange early Friday morning Eastern time, the mercurial electric car executive and world’s richest man said a recession could continue “until spring of ’24.”

The remarks came in response to a tweet from Shibetoshi Nakamoto, the online name for Dogecoin co-creator Billy Markus, who noted that current coronavirus numbers “are actually pretty low. i [sic] guess all we have to worry about now is the impending global recession and nuclear apocalypse.”

“It sure would be nice to have one year without a horrible global event,” Musk replied.

Continue reading, here.

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