Wells Fargo believes 2022 could be gold’s year. In a recent report, bank economists said that the yellow metal is looking to hit $2,100 per ounce by the end of the year. “We believe that investors are actively looking for assets that can add diversification to portfolios. Store-of-value assets, such as bitcoin and gold, are floating to the top of the list, as they have often moved to the beat of their own drummer over the long-term,” said Wells Fargo’s head of real asset strategy, John LaForge. While Bitcoin seems to be getting most of the attention, Wells Fargo is team gold. “Gold’s recent price dormancy does not spook us. It was one of the best-performing commodities during the last commodity bull super-cycle (1999-2011), and we suspect it could be again this cycle.” In other news, Deutsche Bank, the first credible bank to predict a U.S. recession in late 2023, is now telling investors to “prepare for a hard landing.” Deutsche chief economist David Folkerts-Landau said a late-2023 U.S. recession was now a baseline scenario.


Kitco News/Anna Golubova
Is gold the next big play? Gold price heading to $2,100 – Wells Fargo

It is not the time to be disappointed by gold’s underperformance versus some other commodities, according to Wells Fargo, which sees gold as the next potential big play.

With high inflation, geopolitical uncertainty and stocks not performing well, more investors are looking for store-of-value type assets. And despite Bitcoin getting most of the attention over the past year, it looks like 2022 could be gold’s year, said Wells Fargo’s head of real asset strategy John LaForge.

“On the store-of-value front, bitcoin has been getting much of the attention lately, but we think gold may be the next play. Gold’s price chart appears to be slowly grinding higher, while bitcoin’s price has been stuck in a wide $30K to $69K range for the past 12 months,” LaForge said in a note this week.

Read the full story, here.


Reuters via U.S. News
Morning Bid: Of landings hard and soft

A look at the day ahead in markets from Sujata Rao.

The ink is barely dry on global growth forecast downgrades from the World Bank and International Monetary Fund, but banks are rushing out their own gloomy assessments.

“Prepare for a hard landing,” Deutsche Bank shrilled in a Wednesday report. Flagging the possibility of a Fed funds rate in the 4.5-5% range and euro zone rates at 2-2.5%, Deutsche chief economist David Folkerts-Landau said a late-2023 U.S. recession was now a baseline scenario.

Goldman Sachs, meanwhile, warns the Fed faces “a hard path to a soft landing”.

The forward indicators in Friday’s PMI data may signal how bad purchasing managers expect things to get. In the meantime, watch bond markets, which JPMorgan predicts will react if softening economic growth prices out some rate hikes.

You can read the full story, here.


CNN Business/Kunyi Yang
5 savings mistakes people make when building their financial life

The road to financial independence is not easy, and usually requires patience and diligence early on.

For young people still trying to establish their careers, focusing on retirement or saving for the future may not seem like a top priority. But making the wrong money moves early on can be costly.

Here are the five most common mistakes young adults are making when building their financial lives:

Continue reading, here.


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