Due to October’s inflation surge and updates on the latest job report numbers, gold recently broke a five-month high.
And according to Bank of America, 2022 and 2023 may be the years the yellow metal should rally.
In fact, by 2023, Bank of America predicts that gold could eventually reach $2,049 an ounce, just a few dollars shy from its all-time high of $2,089 set in 2020.
Some argue that the accurate price of precious metals like gold and silver has been “clouded” as of late due to various reasons.
However, when news of our economy recording the biggest annual gain in U.S consumer prices in more than 30 years, it became clear how the market felt about the near future.
To say that there is an overall lack of confidence or a less than optimistic outlook on where our economy is headed in the next year or two would be an understatement.
Analyst Ole Hansen of Saxo Bank noted this could be a sign that the market is finally waking up to the realization that inflation is a longer-term problem rather than a transitory one.
Hansen believes gold prices could top $1,900 an ounce at current levels.
March would be nearly two years since we have been fed the same narrative that inflation is transitory and that we, the American people, would not see adverse effects due to our government’s out-of-control money printing and spending.
Finally, people are waking up to see for themselves that the inflation we are experiencing is not a short-term scenario.
Bad for the economy, great for precious metals.
Commerzbank analyst Daniel Briesemann also sees gold rising to $1,900 by the end of the year.
And just as individuals have done throughout time, as they did in 2020, they flock to gold in times of economic turmoil as it has historically acted as a proven safe haven.
The Federal Reserve has a big influence on the prices you pay, your job, your retirement, the stock market, and much more.
With the current administration’s recent decision to renominate Jerome Powell for another term as Fed Chair, unless changes are made quickly, things might get worse before we see any significant improvement.
Has inflation reached its peak?
Call American Hartford Gold today at 800-462-0071 and let us know your thoughts.