Gold trades at about an 8-month high, and critics predict its bank to continue
January 11, 2023: On Tuesday, Gold traded near an 8-month high as the precious metal’s strong beginning of 2023 continued, buoyed by less than yields and a weaker dollar.
On Monday, Spot gold reached $1,881.5 per troy ounce, its highest point since May 9, cooling off as U.S. Federal Reserve officials signalled further aggressive monetary policy action to combat inflation.
Friday’s U.S. jobs report, showing that the labour market remains strong despite Fed efforts to cool improvement, sent U.S. Treasury yields and the dollar lower but provided gold with growth.
“The reopening has also buoyed the metal in China with photographs of very crowded gold markets, which notices pre-Lunar demand and the PBoC informing it bought 62 tons of gold in the previous two months of the year,” Ole Hansen, head of the commodity strategy at Saxo Bank, said in a note Tuesday.
Hansen said the focus this week will be on Thursday’s U.S. CPI inflation print, placing the “next major hurdle” for gold at $1,896/oz.
Therefore, David Neuhauser, founder and chief investment officer at Livermore Partners, said that he anticipates the latest momentum for gold to continue as investors determine that further currency debasement will occur over the upcoming years.
“I think as you look forward, you begin to look around and think ‘, where is the place for the investment in terms of assets?’ and the place to go as an alternative recent is gold, in terms of knowing that you are not going to experiences that debasement of your assets,” Neuhauser stated.
“I have liked gold for a few years. Looking at the dollar, which peaks, it has gained a bit of lift-off for the previous several months, so I see that continuing for some time.”
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