Why Some Analysts Continue to Predict a Banner Year for Gold in 2023

Dear investor, From our vantage, gold has been underperforming expectations set in the beginning of 2023. At the time of writing, the price of gold has only risen 7% year-to-date, and though this certainly is an improvement over the doldrums of November 2022, many analysts had predicted a banner year for gold upcoming in 2023 due to the unstable, inflationary economic and geopolitical climate. However, recently, the U.S. Federal Reserve has turned hawkish, with Fed Chair Jerome Powell stating that the central bank will likely be tightening monetary policy this year, with potential for at least two more rate hikes. Real interest rates are among the most correlated factors against gold prices, with the strength of the U.S. dollar at a close second. Therefore, interest rate hikes spell bad news for gold prices, and with greenbacks putting up a strong performance even amid sticky inflation, further headwinds are ahead. But some analysts continue to predict a new all-time high for gold in 2023, and especially beyond. This is partly due to the perception that the Fed's hiking cycle seems to be nearing its end, with minimal runway remaining for the central bank to rein in inflation before deciding to cut rates. At the same time, many hedge funds have been pulling the plug on their bullish dollar bets, seeing the USD at its peak, with a strong chance for weakness in the coming months. It's not unreasonable to expect that the dollar could drop as we draw closer to the Fed's "terminal rate." Why some analysts are predicting a new all-time high for gold in the coming months [LEARN MORE]( To top it all off, there's the matter of ongoing financial instability. BMI, a unit of Fitch Solutions, said in a report that they see global real GDP growth slowing from 3.1% in 2022 to 2.1% in 2023. The Russia-Ukraine War continues without any sign of stopping, and though inflation seems to be slowly easing, it's proving to be more resilient than expected. And, of course, there's the looming spectre of potential recession, which is in the back of everyone's mind this year. So, while we aren't going to come out and say that 2023 will for sure see gold chalk up a new all-time high, we certainly can see that there are a number of indicators that show its fundamentals remain strong even amid the recent turbulence. And, as gold prices pause momentarily, it may be a good idea to consider investing in those companies you've been following. One to add to your list is U.S. GoldMining, a company backed by a tremendous management team mining an incredible project in Alaska, with almost 10 million ounces of gold in the ground. [Read our full report on the company to learn all the details]( Full Disclosure: U.S. Gold Mining Inc. is a paid sponsor of [PrivatePlacements.com](. Disclaimer: The service and the contents are provided by the sender and other information providers on an "as is" basis. The sender and any and all other information providers expressly disclaim any and all warranties, express or implied any information herein or on [PrivatePlacements.com](. [PrivatePlacements.com]( and its and its owner and its owner's directors, employees, consultants, contractors, agents, and the like ("Representatives"), do not give any tax or investment advice; and do not advocate the purchase or sale of any security or investment. Contents are intended as general information. None of the contents constitutes an: (1) offer to sell or the solicitation of an offer to buy by Blender Media and/or its representatives any security or other investment; (2) offer by [PrivatePlacements.com]( or its owner and/or their representatives to provide investment services of any kind; and/or (3) invitation, inducement, or encouragement by Blender Media and/or its representatives to any person to make any kind of investment decision. You should not rely on the content for investment or trading purposes. Securities or other investments referred to in any of the contents may not be suitable for you, and you should not make any kind of investment decision in relation to them without first obtaining independent investment advice from a person authorised to give it. All communications by [PrivatePlacements.com]( are subject to its terms of use and disclaimer, which can be viewed [here]( and [here](. Copyright © 2023 PrivatePlacements.com, All rights reserved. [Terms of Use]( and [Disclaimer]( You are receiving this email because you opted-in via our website, or have requested to be a subscriber. Our mailing address is: PrivatePlacements.com 422 Richards St. Suite 170Vancouver, BC V6B 2Z4 Canada [Add us to your address book]( Want to change how you receive these emails? You can [update your preferences]( or [unsubscribe from this list](.