The X-Factor that Could Trigger a Gold Boom in the 2nd Half of 2023

Gold has traditionally been considered a safe-haven investment, especially during times of economic uncertainty or market volatility. This is because gold has certain properties that make it an attractive investment option in such circumstances.

Firstly, gold is a tangible asset that has been valued for centuries, and its value tends to hold up even in times of economic downturns. Secondly, gold is a store of value that is not tied to any particular currency or government, and therefore it can act as a hedge against inflation or currency devaluation. Finally, gold is a relatively scarce resource that is difficult to mine, and its supply is limited, which can help to maintain its value over time.

Last week, gold hit $2,000/ounce for the first time in 12 months as the bank run rattled investors. 

Now, a Fed pivot could cause another gold surge  in the second half of 2023. 

The bank run led investors into fixed-income securities and gold — two safe-haven assets that have often thrived during market turbulence.

Gold surged from $400/ounce in 2006 to about $1,000 in 2010 during the great financial crisis. Today, the SPDR Gold Shares ETF — the world’s largest — has seen over $1.3 billion in inflows since the bank run, up 10% in the last month.

If recession fears come true, the Fed will be compelled to slash interest rates to prevent a market rout. Lower interest rates don’t bode well for the dollar and bonds but could be a tailwind for gold prices in the second half of 2023. 

Some experts forecast it could hit $2,500/ounce, indicating a 20% upside potential.

• Strength in Tech Stocks Boosts Market Sentiment
• Dollar Moves Lower as Banking Concerns Subside
• Here’s Why Unusual Options Volume for B2Gold (BTG) May Be a Warning
• Tech Stocks Fall on Higher Bond Yields