Will Gold Prices Reach $3,000 Per Ounce In 2023?
15 May 2023
Will gold prices reach $3,000 per ounce in 2023?
Data is the new oil, according to a common saying. But in 2023, data will unquestionably be the new gold.
The number of times people search on Google for the phrase “how to trade gold” is currently at an all-time high, and that trend doesn’t seem to be stopping anytime soon.
Just days after that statistic made headlines, gold soared to record highs of $2,082 per ounce, shattering its prior high of $2,075 per ounce set in August 2020.
Since the fourth quarter of 2022, gold prices have been on a parabolic rise, increasing their gains from the $1,600 per ounce lows in November to almost 32%.
The rally might not end there either!
The precious metal seems poised for another spectacular run that could take it to new all-time record-breaking highs in this year of “unthinkable macro surprises.”
Although that forecast seems audacious, it is not that far-fetched when you take into account the full scope of macro events that are currently taking place, including the ongoing global banking crisis, doubts surrounding discussions of the United States’ debt ceiling, and signals from the Federal Reserve that the cycle of rate hikes is about to come to an end.
Additionally, when you consider those elements along with the expanding de-dollarization trend, increasing dangers of a global recession, and Central banks buying Gold at a rate never seen, it’s not difficult to understand why the macroeconomic environment for Gold is looking more favourable than ever.
The imminent threat of a U.S. debt default is without a doubt one of the main drivers of rising gold prices this month.
The U.S. owes $31.4 trillion in debt as of right now. This astounding sum is in the news because, if the debt ceiling isn’t raised by Congress by June 1, the United States government won’t be able to pay its debts.
The impact of a US debt default on the global economy “could rival the 2008 financial crash,” according to US Treasury Secretary Janet Yellen.
It’s interesting to note that the American administration has experienced this before.
In 2011, the United States reached its debt ceiling on May 16 and, following a protracted political standoff, approved legislation to extend the limit on August 1. Gold prices had set an all-time high during this time, and the price of silver soared to $50 per ounce.
A similar situation this time around may very well push gold prices to $3,000 an ounce, if history is any indication.