Gold ‘s Potential Rise in Price: The Descent Could be Temporary

There has been a rise in the price of gold over the past three months. In fact, it did reach its yearly low in early November 2022 at $1,640 per ounce, a price it had previously reached in September. However, the recovery from October had taken it back to approximately $1,720, the recovery from November 4th put it up to over $2,000 in early February, and as of today, February 12th, it is hovering around $1,865.

Gold is Believed to Rise Above $3,000 in the Foreseeable Future

On the 2nd of February, the price of gold briefly reached a height of $1,960 before beginning a decline that drove it back below $1,900, and now it revolves somewhere between $1,860 and $1,880 on February 12th.

However, some people specifically think that gold might rise in price to around $3,000. Leigh Goehring, the managing partner of Goehring & Rozencwajg, recently told Kitco News that he wouldn’t be shocked to see a price of $3,000 this year because there doesn’t seem to be any opposition to the potential increase in the price of gold. Goehring also states that these declines were merely a few, extremely brief isolated incidents.

Gold is Believed to Rise Above ,000 in the Foreseeable Future

Fed Policies About Inflation Might have an Enormous Effect on Gold’s Value

Leigh Goehring adds that the market is incorrectly pricing inflation as the Fed ends its aggressive phase of tightening monetary policy. When the Fed stops hiking interest rates, there will be other significant issues with inflation, which will cause a rise in the price of gold.

These are just conjectures, given the current trend shows a considerable and steady decline in inflation, but they are based on the idea that the Fed won’t be able to maintain its tight monetary policy for very long. It will unavoidably need to soften it a little at some time, and at that moment, there will be a risk of a pickup in inflation.

According to financial markets, the dollar’s worth, or the Dollar Index (DXY), and gold‘s value appear to be negatively connected. The dynamics over the price of gold mimic the Fed‘s monetary policies rather than those of inflation. Ironically, gold’s value did not change much when inflation increased, but it did begin to decline when inflation did. Therefore, the rise in the price of gold responds to changes in the Fed’s monetary policy rather than being connected with inflation.

You might check:The Rise of the Euro: Who Benefits

Ana Costa

I am resourceful and passionate about taking on whatever task lies ahead of me. I thrive in workplaces that promote diversity and inclusivity, whether it is working in journalism or being in the first place of global progressive social movements. I'm a journalist with a keen interest in reporting on daily global economic, finance, and crypto news. I have a deep understanding of how financial markets and global economies work, and I'm passionate about covering the latest developments in the world of cryptocurrency. I believe that the intersection of finance and technology is where the most exciting stories can be found, and I'm committed to staying up-to-date with the latest trends and emerging technologies in these areas. With years of experience in reporting and a strong network of sources, I strive to provide my readers with insightful and accurate coverage of the topics that matter most. Whether it's a breaking news story, an in-depth analysis of market trends, or an interview with a leading industry expert, I'm always ready to tackle the next big story and deliver it to my audience in a clear and engaging way. I focus on social media marketing, digital marketing, and market research. My strengths lie in creative marketing plans, collaboration with team members, and an eye for rising trends in different target markets.

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