Dear Traders,
I present a comprehensive review of the gold market for 2023. Upon observing the current chart, it is evident that Gold has established a stabilizing range, roughly between 1960 and 2000. Should either threshold be breached, anticipate a significant surge in market activity.
My bullish outlook on gold for 2023/2024 is substantiated by several key factors:
Ongoing geopolitical tensions, particularly the conflict in Israel, are fostering a risk-averse sentiment among traders. The perceived risk of global repercussions on prosperity is a significant driving force in this regard.
The US economy is exhibiting a substantial slowdown, notably reflected in the frequent downward revisions of the Non-Farm Payroll (NFP) data. This trend, where the majority of newly created jobs are often within the government sector rather than profit-generating roles, indicates a concerning deceleration in economic growth.
Escalating mortgage rates, currently at 8%, are dissuading potential homebuyers, thereby instigating a potential stagnation in the housing market over the next 3 to 5 years. This situation may prompt pressure on the Federal Reserve (FED) to reduce rates, which could, in turn, reignite inflation and further disrupt the market.
The US finds itself in a state of stagflation, which could lead other countries to follow suit. Consequently, investors are pivoting toward safe-haven assets in equities, a trend likely to soon extend to commodities.
Hence, my forecast for gold by the close of 2023 stands at 2100, 2300 by the end of 2024, and 2500 by 2025, under the presumption that market dynamics persist without significant alterations, including the absence of geopolitical conflicts and a substantial reduction in global inflationary pressures.
I present a comprehensive review of the gold market for 2023. Upon observing the current chart, it is evident that Gold has established a stabilizing range, roughly between 1960 and 2000. Should either threshold be breached, anticipate a significant surge in market activity.
My bullish outlook on gold for 2023/2024 is substantiated by several key factors:
Ongoing geopolitical tensions, particularly the conflict in Israel, are fostering a risk-averse sentiment among traders. The perceived risk of global repercussions on prosperity is a significant driving force in this regard.
The US economy is exhibiting a substantial slowdown, notably reflected in the frequent downward revisions of the Non-Farm Payroll (NFP) data. This trend, where the majority of newly created jobs are often within the government sector rather than profit-generating roles, indicates a concerning deceleration in economic growth.
Escalating mortgage rates, currently at 8%, are dissuading potential homebuyers, thereby instigating a potential stagnation in the housing market over the next 3 to 5 years. This situation may prompt pressure on the Federal Reserve (FED) to reduce rates, which could, in turn, reignite inflation and further disrupt the market.
The US finds itself in a state of stagflation, which could lead other countries to follow suit. Consequently, investors are pivoting toward safe-haven assets in equities, a trend likely to soon extend to commodities.
Hence, my forecast for gold by the close of 2023 stands at 2100, 2300 by the end of 2024, and 2500 by 2025, under the presumption that market dynamics persist without significant alterations, including the absence of geopolitical conflicts and a substantial reduction in global inflationary pressures.