Daily Gold Market Report

Gold nudges higher as traders remain cautious ahead of Fed
Wisdom Tree says gold could hit record high of $2500 over next twelve months

(USAGOLD – 7/20/2023) – Gold nudged higher this morning as traders remained cautious ahead of next week’s Fed rate decision. It is up $6 at $1984.50. Silver is up 7¢ at $25.27. “Chairman Powell’s press conference is the key focus,” Nationwide Life’s Kathy Bostjancic told Bloomberg this morning. “Powell and the FOMC have muddled their message to the markets. He has an opportunity to provide clearer guidance next week.” Wisdom Tree, the Dublin-based investment firm, says gold could hit a record high of $2500 per ounce within the next twelve months.

Citing the possibility of a recession as central banks continue to raise rates, Nitesh Shah, head of commodities trading at the firm, sees gold’s role as a portfolio safe haven coming into play. “Gold,” he says, “tends to perform well in times of economic stress.… [W]hen composite leading indicators turn strongly negative, gold performs positively while equities tend to be negative. Gold also outperforms Treasuries, which are seen as competing defensive assets.” [Source: TrustNet]