Call us on: 0203 318 5757
HOME
MENU
CLOSE

Gold booming against the pound as Bank of England issues grim warning

The gold bulls are booming against the pound right now in a display of strength that looks set to carry the yellow metal through the weekend. Gold is gaining in the aftermath of remarks made by the Bank of England which warned of a lengthy period of recession.

Governor Andrew Bailey indicated that the Bank of England would follow a similar course of action to the U.S. Federal Reserve and embark on a series of interest rate hikes to cool inflation, despite the economy already facing its most protracted period of recession in more than a century.

The 0.75% rate increase which helped the gold bulls to gains is the largest since 1989 and inflicts further pain on households and businesses. “Inflation is too high, and it’s the bank’s job to bring it down. If we do not act forcefully now it will be worse later on,” Governor Bailey said.

Indicating that there was a tough road ahead and the outlook was very challenging, Bailey warned the bank expects the economy to continue in recession until 2024. He also said that its forecasts suggest inflation will peak at 11% in the current quarter. Much like the Federal Reserve, the Bank of England is targeting a 2% rate of inflation.

With Bailey’s comments seeing the pound lose ground to the dollar, gold prices traded higher with 1% added during the course of trading yesterday (Thursday).

ALL POSTS

Related Posts

UK House Price Growth Continues — Buying Opportunities Emerge
Wind, Solar and Hydrogen Power UK Industry Into a New Green Age
EV Adoption and Charging Infrastructure Accelerate Across the UK
Self Certified Sophisticated Investor Statement
I declare that I am a self-certified sophisticated investor for the purposes of the restriction on promotion of non readily realisable securities. I understand that this means:
i. I can receive promotional communications made by a person who is authorised by the Financial Conduct Authority which relate to investment activity in non-readily realisable securities;
ii. The investments to which the promotions will relate may expose me to a significant risk of losing all of the property invested.
I am a self-certified sophisticated investor because at least one of the following applies:
a. I am a member of a network or syndicate of business angels and have been so for at least the last six months prior to the date below;
b. I have made more than one investment in an unlisted company in the two years prior to the date below;
c. I am working, or have worked in the two years prior to the date below, in a professional capacity in the private equity sector, or in the provision of finance for small and medium enterprises;
d. I am currently, or have been in the two years prior to the date below, a director of a company with an annual turnover of at least £1,000,000.00.
I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me to seek advice from someone who specialises in advising on non-readily realisable securities.
High Net Worth Investor Statement
I make this statement so that I can receive promotional communications which are exempt from the restriction on promotion of non-readily realisable securities. The exemption relates to certified high net worth investors and I declare that I qualify as such because at least one of the following applies to me:
I had, throughout the financial year immediately preceding the date below, an annual income to the value of £100,000.00 or more. Annual income for these purposes does not include money withdrawn from my pension savings (except where the withdrawals are used directly for income in retirement). I held, throughout the financial year immediately preceding the date below, net assets to the value of £250,000.00 or more. Net assets for these purposes do not include:
a. The property which is my primary residence or any money raised through a loan secured on that property; or b. Any rights of mine under a qualifying contract of insurance; or c. Any benefits (in the form of pensions or otherwise) which are payable on the termination of my service or on my death or retirement and to which I am (or my dependants are), or may be, entitled; or d. Any withdrawals from my pension savings (except where the withdrawals are used directly for income in retirement).
I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me to seek advice from an authorised person who specialises in advising on non-readily realisable securities.
Information Request
Your privacy is guaranteed.
All data is handled under current GDPR rules.
Risk Warning
All persons who register as an ‘investor’ on this Website should read carefully the following warnings before making any investment.
All investment products carry risks. The relevant webpages and documents will cover risks specific to an individual offer. Please bear in mind the following general risks involved when investing through this Website:
Your personal decision to invest
A decision to invest in a company is a personal decision by you and no responsibility for the consequences of that decision is accepted by either U.K. Income and Growth or by any of its partners, directors, agents, employees or other members. To invest through this Website you need to understand the following important risks:
You are not covered by the financial services compensation scheme
Investments, whether in new or existing businesses, carry high risks as well as the possibility of high rewards. Accordingly, each investor should consider very carefully whether such investments are suitable in the light of their own personal circumstances, commitments and available financial resources. Engaging in any investment activity may expose you to a significant risk of losing all of your investment. This is a high risk investment and much riskier than a savings account. If a company fails, it is likely that you may lose all, or part, of your initial investment and receive no outstanding or future interest payments. In such circumstances neither the company nor U.K. Income and Growth will pay you back your investment.
Most of the companies in which U.K. Income and Growth invest are new companies with limited if any track record. These companies will provide information such as their business plan and financial forecasts. Please be warned that these documents are not guarantees that the relevant company can achieve what it is hoping to do. Equally the information provided may state certain facts and statements, and again please be warned that U.K. Income and Growth are not responsible for checking the accuracy of these facts and statements, which may not always prove to be true or complete.
Liquidity
As an investor you should be aware that no established market exists for the trading of the bonds and equity in private companies, and such bonds and equity are not easily realisable. It must be appreciated that there could be difficulty in selling such investments at a reasonable price and, in some circumstances, it may be difficult to sell them at any price.
Diversify your investments
Diversification by spreading your money across different types of investments should reduce your overall risk of financial loss. We highly recommend investors do this to maintain a balanced portfolio. Investors should also consider avoiding putting their money in the same investment as immediate family members. Investors should only invest a proportion of their available investment funds due to the high risks involved.
Tax
Tax treatment depends on your individual circumstances and may be subject to change in the future. U.K. Income and Growth recommends that if you require tax advice, you should seek this from a qualified tax professional and recommend that you take your own tax advice on any investments which you make via this Website.
Recommendation
U.K. Income and Growth doesn’t provide advice or make personal recommendations. If you are in any doubt about the action you should take or the contents of a particular Offer Document, you should seek advice from an independent financial advisor authorised under the Financial Services and Markets Act 2000 (+ 2012 Amendments).
Past performance
Past performance is not a reliable indicator of future performance. You should not rely on any past performance as a guarantee of future investment performance.
Where security is in place or assets held in support of the investment, there is a risk that if the underlying borrower defaults, or if there is a delay in realising the asset, then the asset may not be sold for enough to cover the loan or may result in delayed repayment of investors’ money. Additionally, where the security is not a first charge, in the event of a sale of the asset funds will be available to be paid to investors only after payment to the chargeholders who rank ahead of investors.
Disclaimer
Investing in equity opportunities such as those promoted by U.K. Income and Growth, involves risks including loss of capital. Investments made through U.K. Income and Growth are not covered by the Financial Services Compensation Scheme (FSCS).
U.K. Income and Growth is a trading style of Relentless Marketing Ltd, a company registered in England and Wales with Company Number: 11530330 and registered address 71-75 Shelton Street, London, Greater London, United Kingdom, WC2H 9JQ