According to David Rosenberg, founder and chief economist at Rosenberg Research, investment demand in gold could push prices above an all-time high of $2,000 in 2023 as the US economy plunges into recession. According to Gerald Celente, Publisher of The Trends Journal, gold prices have hit a bottom despite their sluggish performance in 2022.
“This is the only question investors should be asking themselves this year”
When it comes to the health of the economy, the only question investors should be asking themselves this year is, “How bad will the impending recession be and how should they protect their wealth?” David Rosenberg said. says it is. In his 2023 outlook report, Rosenberg notes that he uses a fixed investment strategy and is bullish on gold and bonds as he sees a peak in the US dollar and the Federal Reserve’s monetary policy.
Rosenberg’s pessimistic outlook came as the S&P 500 rose nearly 4% since the start of the new year. The mood on Wall Street improved as positive employment data and falling inflation boosted hopes for a soft landing for the US economy. “I see this perspective as hope and prayer,” Rosenberg said. A recession is as close to a certainty as anything can be,” he says.
“What happens in a recession is that they eventually come to an end!”
Inflation remains persistently high despite falling sharply from summer 2022 peaks. Rosenberg says the Fed’s determination to bring inflation back to its 2% target means it will be slow to respond to growing economic weakness. He adds that the Fed will not be quick to cut interest rates as it does not want to see a new threat of inflation. In this context, Rosenberg makes the following statement:
What happens in a recession is that they eventually come to an end. The moderate and short-term relationships we’ve seen in the past were based on the Fed’s early and aggressive rate cuts. But this time there won’t be a jailbreak release card. I’m more worried about a more severe setback. If it isn’t more severe in magnitude, then it certainly will be in duration.
“This will be positive for gold prices!”
In this environment, Rosenberg says the Fed will raise interest rates once again next month and then hold them there until recession conditions become too difficult to ignore. As for markets pricing the federal funds rate above 5%, Rosenberg says investors should be highly skeptical of central bank projections. “This is the same Fed that saw interest rates early last year and ended the year at 0.9%. So what do they do for a repeat?” he asks. Rosenberg predicts that the Fed will cut interest rates in the second half of the year. For this reason, he states that gold prices are on the rise. In this regard, he makes the following statement:
Gold prices will hit an all-time high in dollar terms this year. And let’s not forget what an extraordinary year 2022 had for gold, which reached almost new heights in all other currencies. Last year, the US dollar exceeded its core values. We will now see that this returns to the mean. That will be positive for gold.
As for how bad this year’s recession will be, Rosenberg says it could last for more than six quarters, the longest recession since the 1980s.
Sorry, folks. No soft landing. On track for 3 straight quarters of declines in real retail sales alongside 2 successive negative production numbers. Only happens in recessions.
— David Rosenberg (@EconguyRosie) January 18, 2023
“Gold prices may even go to $2,500 levels”
According to Gerald Celente, Publisher of The Trends Journal, gold prices have hit a bottom despite their sluggish performance in 2022. Celente begins to explain its views on this issue as follows:
I would say $1,800 is a pretty good bottom for gold. $1,800, or $1,750 for sure… This could be the year gold really hits a much higher level, well above $2,000. It may even go to the $2,500 levels.
“Then gold will skyrocket!”
cryptocoin.com As you can follow, gold prices have increased by 4.4% since the beginning of the year. It currently trades around $1,910 per ounce. Celente’s optimistic outlook on gold stems from its tough macroeconomic outlook, as well as its role as a hedge against financial instability. Celente claims that 2023 will witness a ‘market crash’. It also suggests that the US government will use war to distract citizens from harsh economic reality. In this regard, he makes the following assessment:
This is really important. We’re talking about a market crash in 2023. Interest rates are the only thing keeping the markets afloat. They rise and the market falls. When all else fails, they take you to war.
Gerald Celente argues that gold plays a geopolitical hedging role, arguing that if current events that set future trends continue to escalate to war in Ukraine and the Middle East, then gold will skyrocket.
