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Gold Continues To Climb – But How High Will Prices Go? [VIDEO]

Gold prices extended their bullish run on Wednesday, amid firming expectations that the Federal Reserve will continue to dramatically reduce the pace of rate hikes throughout the first quarter of 2023 or even bring them to a complete end.

After lagging last year, Gold has finally made its move, with many of the world’s leading Wall Street banks predicting new record highs for Gold in 2023 on growing evidence of cooling inflation and a hotly anticipated Federal Reserve pivot.

Since the final quarter of 2022, Gold prices have gone parabolic rallying over $300 an ounce from their November lows of $1,600 – tallying up a staggering gain of over 15% in the last 3 months.

There are plenty of reasons why Gold prices are snatching headlines and seeing huge bullish tailwinds in 2023. These primarily include; a slowdown in the Fed's interest rate cycle, leading to the eventual end of hikes in the first quarter of 2023. China’s reopening, global recession risks, signs of a weakening dollar, on-going geopolitical tensions and rapidly rising physical demand as central banks continue to build their gold reserves to diversify away from the U.S dollar.

Interestingly, Gold prices and Commodities in general are beginning to resemble the identical trend seen during the first quarter of 2020 – just before prices surged to new all-time highs.

Historically, each time, Commodities have made an exceptional start to the year – they have always gone onto the finish the year as the best performing asset class.

Since we're on the topic of all-time highs – BHP Billiton the world's biggest mining company and a major producer of commodities such as Gold and Silver hit all-time record highs on Monday – providing a clue to the market on where precious metal prices could be heading in the months ahead.

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:

Author

Phil Carr

Phil Carr

The Gold & Silver Club

Phil is the co-founder and Head of Trading at The Gold & Silver Club, an international Commodities Trading Firm specializing in Metals, Energies and Soft Commodities.

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