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Investment Management & Consultancy goehring. "I wouldn't be surprised to see a price of $3,000 this year," said a company official. “The time has come for people to be optimistic about gold.”
Gold Heading for ‘Record Highs’ This Year
Investment firm Goehring & Rozencwajg’s managing partner, Leigh Goehring, shared his outlook for gold in an interview with Kitco News last week. Goehring has 32 years of experience in the investment of natural resources. He's in charge of the goehring.
"Gold will peak this year," he started by pointing out that the metal peaked at $2,050 in August 2020 and again in March of last year. The executive said in the paper:
This year, we will set a historic record ... It’s time for people to want to be bullish on gold.
He believes the Fed will stop raising interest rates and may even start lowering them. "then we'll have another big inflation problem... that's the inflation decade," he warned. After a series of 75-basis-point interest rate hikes, the Fed raised its benchmark rate by 25 basis points last week.
Goehring expects investors to look to gold when they realize that inflation will not be reduced to the Fed's 2 per cent target. "Right now, when inflation goes up, the Fed goes up the rates, and people are selling gold," he said, adding:
I think psychology is going to make inflation go up, the Federal Reserve isn't going to raise rates, or it's going to fall behind, and inflation becomes a real problem.
The investment manager compared this to what happened in the 1970s. "after the Fed began to increase rates aggressively from 1973 onwards, Gold prices have been corrected by 45 percent... when the feds finally gave up a couple of years later, inflation from one year to the next was still 5 per cent,' he said. Noting that the market will find that Fed rate hikes are coming to an end and inflation is not over, The executive said, Back in the seventies, when people found that inflation was always a major issue, it was at this point that the price of gold began to go mad after reaching a trough at the end of 1976."
Although he admits he does not know "how the gold can go high", Goehring said:
It would come as no surprise to me that there is a $3,000 prize this year.
The cash price for gold was $1,869 per ounce at the time of this report, with gold futures trading at $1,882. Goehring is not the only one who expects gold to reach the highest levels this year. Market strategist Gareth Soloway believes that gold will be the best performer in 2023. Rich Dad Poor Dad author Robert Kiyosaki said in January that gold could hit $3,800 this year. Meanwhile, Harry Dent has predicted that gold may fall to the range of $900 to $1,000 over the next 18 months.
Do you think that gold will reach 3,000 dollars this year? Please let us know in the comments below.
