Fed pullback sets up ‘pretty nasty’ down trend for risk assets: Larry McDonald
The Bear Traps Report founder Larry McDonald looks ahead to the Federal Reserve’s first rate decision of 2023 on Wednesday.
The demand for gold skyrocketed, rising to its highest point in over a decade last year. And that demand may continue, helped by substantial central bank buying and strong retail investment.
The yellow metal jumped 18% year-over-year in 2022, reaching 4,741t last year as inflationary pressures persisted and traders sought material wealth in the face of a shrinking U.S. dollar.
Year to date, the value of gold is approximately 6% higher after gaining almost 20% the last three months. The yellow metal is predicted to reach $2,000 per ounce in 2023. (Discovery Channel / Fox News)
Gold is up about 6% this year and is predicted to reach $2,000 per ounce in 2023.
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Data compiled by the World Gold Council showed annual central bank demand more than doubled to 1,136t in 2022, up from 450t the year before and to a new 55-year record high.
Meanwhile, fourth-quarter purchases peaked at 417t, bringing the total for the second half of 2022 to more than 800t.
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“Gold appears to have gotten its groove back,” Edward Moya, a senior market analyst at Oanda in New York, told FOX Business.
“The precious metal is seeing massive inflows as global bond yields decline and central banks near the end of their respective rate hiking cycles.”
Federal Reserve Board Chair Jerome Powell is predicted to raise rates by 25 basis points, setting the federal funds rate between 4.5% to 4.75%, while marking the highest rate level since 2007. is Magana / Associated Press)
The Federal Reserve on Wednesday raised interest rates by 25 basis points, reducing the size of prior hikes but signaling inflation remains too high.
Source: Fox News
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