You Can Always Count On GOD’S MONEY To Rally In Hard Economic Times …
The Value of Gold and Silver: What Is Happening with Precious Metals and Why?
You Can Always Count On GOD’S MONEY To Rally In Hard Economic Times …
by Milan Tomic | Contributing Writer | Eternal Affairs Media
The price of gold skyrockets to $2,000; will it hit an all time high?
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As a result of recent issues in the global banking industry, such as Silicon Valley Bank’s failure and Credit Suisse’s decline, gold has once again gained its brightness.
Following weaker US economic data on Tuesday, demand for gold increased. Over $2,000 per ounce was reached by spot gold, reaching a more than one-year high. The US dollar’s depreciation and rising bond yields both contributed to the growth of this safe haven.
During early trading hours, the spot price of the precious metal surged back over $2,000 per ounce, reaching a high of $2023. It ended the day at roughly $2,020 USD, down a tiny bit from where it started. Gold last reached this high in February 2022. In the meantime, the price of silver increased by about $1 on Tuesday, closing at $25 for an ounce.
A strong rally was also seen in other precious metals. Palladium increased by over 1% to trade close to $1,478 per ounce, while platinum soared by almost 3% to $1,014 per ounce.
The latest factors driving gold to its all-time high of $2,075 are weakness in the most recent US economic data and rising expectations that the Fed Reserve may look to start lowering interest rates.
According to Yahoo Finance, some experts predicted that gold prices will average $1950 with extensions up to over $2000 at different periods by the end of the year.
Why is this happening?
Tuesday’s significant increase in gold prices coincided with growing rumors regarding US Federal Reserve policy going forward. A lower number of job openings indicates that the Fed is succeeding in taming inflation and may stop raising rates or even change course. Job openings are a measure of labor demand. The US dollar has suffered as a result of this news, but gold has risen. The Fed’s most recent action was to raise the benchmark overnight interest rate by a quarter of a percentage point at the end of March. The central bank stated at the time that further increases would largely depend on upcoming data.
The US Bureau of Labor Statistics published statistics on Wednesday indicating a decline in both the number and percentage of job vacancies to 9.9 million (-632,000) and 6.0 percent, respectively. According to the statistics, professional and business services (-278,000) had the highest drops in job opportunities. Construction had a 129,000% rise in job postings, while the arts, leisure, and recreation sectors saw a 38,000% increase.
This week’s developments in the oil industry have also had an impact on the price of gold. As OPEC+ members unexpectedly reduced their supply, the market had better buckle up for a rocky trip as oil prices rose.
According to some analysts, rising oil costs may cause inflation to increase. Even if the Fed is more likely to maintain high rates if inflation persists, this situation would increase the allure of gold as a hedge.
Conclusion
While it may not seem like the ideal moment to enter the market with gold nearing its all-time high, investors are frequently advised to buy low and sell high. There are complexities to the current scenario, though, as two experts pointed out.
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