The £130 ($160) gains gold has posted over the course of the last few weeks could be just the beginning, according to one industry expert who says that massive price increases are a very real – and near – possibility.
While the bulls have performed admirably of late, even more dramatic progress could be made should the situation in the Middle East deteriorate further.
“We could see £1,793 ($2,200) an ounce,” says asset strategist Rich Checkan, of Asset Strategies International. “If a state agency gets involved directly in the conflict, not through proxies, I see gold going up dramatically.”
The Federal Reserve could also be close to sunsetting its rate hikes policy Checkan says, with little room left to increase rates further, due to the U.S. government’s soaring debt levels. This leaves Jerome Powell between a rock and a hard place. Checkan explains, “The U.S. government can’t service [its] debt. The debt is £27.1 trillion ($33.5 trillion). They can’t pay the interest on that right now. Fed Chair Jerome Powell is hoping he can talk tough long enough. But I don’t think he’s got the ammunition to make [inflation] come under control at this point. The Fed has broken the bank balance sheets and they’re breaking the back of the middle class right now. When they go to refinance this debt, that’s when it all hits the fan.”
It has been widely predicated that when the rate hikes program does wind down, the gold bulls will be unleashed. If the end of percentage point increases coincides with an economic slowdown – as some expect in Q1 of 2024 – gold prices should rise swiftly and dramatically. Don’t wait for that perfect storm to hit. Position yourself for success now.
