The dollar has temporarily strengthened, bringing gold and silver down a fraction from last week. Gold is at $2,006, with silver at $25.61, while platinum has climbed 7% to $1,106, and palladium is up 9.6% to $1,653.
From a year ago today, gold is up 2.8%, silver is up 1.6%, platinum is 10.6% higher, while palladium has cut its losses to -30% from a year ago today.
A report from analysts at Standard-Chartered (British multi-national bank) is calling for gold and bonds to outperform equities. It recommends reduced allocations to stocks and increased allocations to gold and bonds. They believe there is an 80% likelihood of a recession in the US and across Europe and that stocks will likely take a hit while bonds and gold strengthen.
Interest rates in the US are expected to drop below 3% by year-end, with or without another quarter percent increase in May.
Global silver demand reached record levels in 2022, at 1.242 billion ounces - a trend that continues in 2023. This complements a record year for central bank gold purchases, with news that China continues to buy gold and sell US treasuries in preparation for possible sanctions.
Increased allocations of silver and gold are good for American citizens as well.
Analysts at Bank of America have raised their gold target to $2,500 through 2024, which seems a little conservative, but would be a solid return for the next couple years, compared to other assets and sectors.
Inflation was reported at 5% for March, which is a little lower but still significant. One of the main drivers was lower energy costs, but energy seems to be headed back higher. The other costs that have risen (such as rent and lodging) do not appear to be dropping, which may apply upward pressure on inflation as energy costs rise
About the Author: Bill Stack
Financial Analyst of 29 years and Gulf War Veteran, Bill has been helping families nationwide keep their money safe and growing since 1993. As a Certified Financial Fiduciary® and a RICP®, Bill specializes in helping protect your assets with growth potential.