Ongoing recession fears will propel gold to a new record high before the end of this year, according to a new report released this week. The 2023 outlook by Rosenberg Research calls for gold prices to sail past £1,619 ($2,000) as the economy hunkers down for what could be the longest recession in more than 40 years.
David Rosenberg, the founder of Rosenberg Research and a former Wall Street economist and strategist says investors should be prepared for a deep recession, saying “A recession is as close to a sure thing as anything can ever be.”
The problem, according to Rosberg is that the Federal Reserve hasn’t acted on the economic warning signs because they have remained laser focused on bringing inflation down to a 2% target.
This means that the recession will be deeper or longer. “What happens in a recession is they ultimately end. But there’s not going to be a get-at-out-of-jail-free card this time around. I’m more concerned about a more severe downturn, and if it’s not more severe in terms of magnitude, then certainly in terms of duration,” he said.
“Gold will be making all-time highs in U.S. dollar terms this year. And let’s not forget what a phenomenal year gold had in 2022 as it hit practically new highs in every other currency. Last year, the U.S. dollar overshot its fundamentals, and we are going to see that revert back to the mean, and that will be positive for gold.”
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