Gold to breach $US2000 per ounce
As 2022 comes to an end it brings with it many many financial hardships as stocks plummeted, Crypto crashes and a decline in Gold price since it's peak in March 2022.
Gold has been on a steady recovery since October when it saw it's lowest point over the past two years trading at just over $US1600 per ounce. The March spike was caused by the Russian invasion of Ukraine as many rushed to hedge their funds against a weakening US dollar a midst a war break out.
Raising interest rates saw a lot more people liquidating assets to pay down debt which saw some heavy price drops across all markets with Crypto hardest hit.
Reserve Bank Interest Rate Rise
Despite many stating the worst is behind us chances are we will be getting another interest rate rise after Christmas with concerns raised of Christmas spending adding to inflation and the lack of COVID restrictions means a lot more people are heading out to spend more money that they haven't been able to do over the past few years.
Renters will be the biggest losers going forward as the RBA met to increase rates by 50 basis points but opted for 25 instead with the most likely outcome being a 50 basis point increase when they meet in February. As housing prices begin to decline yet still above pre pandemic levels the increase in rates will see renters wear the full burden with an increase in weekly rent.
.jpg&q=30&output=webp "Gold to breach US2000 per ounce 1.jpg")
The Inflation Event
With Inflation tipped to continue through 2023 and more than likely ever increasing interest rate rises and a weakening dollar people will be looking to hedge their fiat to beat inflation. This will see the prices of precious metals continue to increase with many strategists making calls that Gold will breach $US2000 an ounce and never look back.
Predictions are also putting Copper to decline down to $US7000 as the industrial metal out performed throughout 2022 reaching a peak of $US10,203 which once again peaked as War broke out between Russia and Ukraine but copper has been on a decline ever since. The value drop will see electronics to housing costs reduce and become a bit more affordable.
Gold Gold Gold
If you're looking for a way out of the current financial doom and gloom then a really good strategy to look at is increasing the amount of gold you hold in your portfolio. With traditional estimates claiming 10% it might be a good strategy to lift that level to 15 - 20% and possibly selling once the price peaks to invest in other stocks.
Fiat currency will continue to experience weakening throughout 2023 at this stage so while 2022 has been a challenging year for many 2023 is most likely going to get a heck of a lot worse.
Image sources provided supplemented by Canva Pro Subscription. This is not financial advice and readers are advised to undertake their own research or seek professional financial services.
Posted Using LeoFinance Beta
