Gold and Silver continued their positive run, hitting their one-year highs as other economic data in the U.S. seems to be headed in different direction.
Numbers for job openings slipped below 10 million as factory orders slowed in the first quarter of 2023. The U S Dollar dropped to a 2 month low. The good news for investors seems to be that gold as passed the $2,000 mark.
While inflation is still here, spot gold was hit its high of $2,017.92 per ounce ( 2pm EST) its highest since March of 2022. The U.S. gold futures finished at $2,038.20, 1.9% higher than the $2,024.89 spot gold hit earlier.
When considering the potential future price for gold many expect the $2,750 range by end of 2023 and $3,320 range within the next two years.
Other precious metals followed the rise in gold: silver increased by 3.8% to $24.91 an ounce, platinum increased by 3.3% to $1,017.91, and palladium increased by 0.3% to $1,456.05.
Gold, which is customarily regarded as the preferred inflation hedge, has been able to overcome the usual pressure from the likelihood of interest rate hikes that could be implemented to contain rising price pressures thanks to a surge in oil prices this week following a surprise output cut by OPEC+.
According to David Meger, director of metals trading at High Ridge Futures, “we’re in this extremely good environment for gold in which we have the weakening of economic indicators together with the inflationary pressures continuing elevated.”
The dollar increased its losses as statistics revealed that factory orders and job opportunities in the United States both fell in February, bolstering the appeal of gold, particularly among traders holding other currencies. The probability that the Federal Reserve will increase interest rates by a quarter point in May is currently about 43%, with a pause having a probability of around 57%. The housing market is down 12%, again leaving gold and other precious metals as a stable, consistent choices now. Though, Exinity’s Han Tan – chief market analyst – believes with possible rate hikes, gold could lose some its current gains.
Conversely, Heraeus precious metals dealer Alexander Zumpfe was quoted, “Technically speaking, the price of gold is most likely to hold up well and stabilize at or even surpass its current level. If prices shatter the $2,050-mark, which may serve as a significant resistance level, they may rise fast toward their all-time high. “