3500% INCREASE! Gold Is About to Do Something It Hasn’t Done in Almost 50 Years – Gareth Soloway
Gold starts the new week strongly, building on last week’s recovery trend as buyers propel the price higher. This upward momentum is partly due to a weakened US Dollar, which in turn is tracking lower US Treasury bond yields amidst a mixed market sentiment.
Considering their recent price movements, Gareth Soloway, chief market analyst, shares optimism regarding gold and gold mining stocks. The gold price remains above the 2,000 dollars mark during the early Asian session on Monday. This stability is partly attributed to US economic data hinting at persistent inflation rates, leading financial markets to moderate expectations about a potential interest rate cut by the Federal Reserve in June. The gold price is currently trading at 2,014 dollars, registering a 0.12% gain for the day.
Gareth observes that gold’s price is near its all-time high and appears to be consolidating well, suggesting a potential breakout shortly. However, he advises caution, emphasizing that gold miners may not experience significant gains if gold fails to break out. Notable mentions include Newmont Mining and Barrick Gold as robust options for investors.
In the past quarter, average spot gold prices have surged by more than 13% due to a weakened dollar and optimism about potential interest rate cuts by the US Federal Reserve this year. Barrick Gold’s copper production has also significantly increased to 113 million pounds.
Barrack Gold reported an adjusted profit of 27 cents per share for the three months ending Dec. 31, surpassing the average analysts’ estimate of 21 cents, as per LSEG data. Additionally, in the third quarter of 2023, the number of hedge funds bullish on the stock rose to 36, up from 32 in the previous quarter.
Inflation has been a topic of keen interest for many, and Gareth shares his perspective by comparing the current economic situation with that of the 1970s. They forecast that inflation could reach the 3% mark and then struggle to fall below that threshold.
On Friday, the Labor Department released its producer price index, which measures inflation before it impacts consumers. According to the report, prices rose by 0.3% from December to January, following a slight drop of -0.1% from November to December. Year over year, producer prices increased by a modest 0.9% in January.
Gareth cautions that if inflation remains above 3% and starts to rise further, it could pose a challenge for the Federal Reserve. They would face difficulties aggressively cutting rates to boost the economy without potentially exacerbating inflationary pressures.
Despite the challenges, Federal Reserve policymakers remained composed and saw the overall progress toward the Fed’s 2% inflation target as positive. They also noted a slight moderation in labor market strength, but overall, the economy appears on track for a soft landing.
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You got to be bullish on gold and gold miners and again I’m sure people aren super super surprised to hear me say that I do have some other stocks out there that I think are worthwhile but I love the price action in Gold here it’s so close to the all-time high lineup
Here which again going back to 2020 that was that High Line right across we actually are up again today consolidating beautifully I would guess within a month or so we are breaking out to the upside on gold gold miners are so cheap down here if gold can break out I
Say if because because again if doesn’t then gold miners aren’t going anywhere but I love the price action on the GDX today getting a good move again beautiful double bottom right down here gold starts the new week strongly building on last week’s recovery Trend as buyers Propel the price higher this
Upward momentum is partly due to a weakened US dollar which in turn is tracking lower us treasury bond yields amidst a mixed market sentiment considering their recent price movements Gareth Solway Chief Market analyst shares optimism regarding gold and gold mining stocks the gold price remains above the $2,000
Mark during the early Asian session on Monday this stability is partly attributed to US economic data hinting at persistent inflation rates leading financial markets to moderate expectations about a potential interest rate cut by the Federal Reserve in June the gold price is currently trading at $214 registering a 0.12% gain for the
Day Gareth observes that gold’s price is near its all-time high and appears to be consolidating well suggesting a potential breakout shortly however he advises caution emphasizing that gold miners may not experience significant gains if gold fails to break out notable mentions include Newmont Mining and Barrack gold as robust options for
Investors in the past quarter average spot gold prices have surged by more than 133% due to a weakened Dollar in optimism about potential interest rate cuts by the US Federal Reserve this year Barrett Gold’s copper production has also significantly increased to13 million pound Barett gold reported an
Adjusted profit of 27 cents per share for the 3 months ending December 31st surpassing the average analyst estimate of 21 cents as per lseg data additionally in the third quarter of 2023 the number of hedge funds bullish on the stock Rose to 36 up from 32 in
The previous quarter join us as we delve into insights shared by Gareth Solway to stay updated with our latest uploads subscribe to our Channel and activate notifications thank you you got to be bullish on gold and gold miners and again I’m sure people aren super super
Surprised to hear me say that I do have some other stocks out there that I think are worthwhile but I love the price action in Gold here it’s so close to the all-time high line up here which again going back to 2020 that was that High Line right across we actually are up
Again today consolidating beautifully I would guess within a month or so we are breaking out to the upside on gold gold miners are so cheap down here if gold can break out I say if because because again if it doesn’t then gold miners aren’t going anywhere but I love the
Price action on the GDX today getting a good move again beautiful double bottom right down here uh Newmont mining a uh baric gold are all interesting plays I’m generally sticking with best of breed right now because I think those will be the first ones to be the recipients and
Then the the Juniors might be next um a couple stocks that I think are worthwhile keeping an eye on I think something like Hershey any sort of uptick in inflation makes the probabilities of the Federal Reserve cutting interest rates as much as the market Market is pricing in uh less and
Less likely so if we look at just a few months ago it was six rate cuts that the market was pricing in even though Drome Powell was saying hey guys we’re not going to start cutting till the second half of the year and we’re only going to
Do three I think if you look at the FED funds Futures tool the watch tool it’s now down to four rate Cuts this year this the first one starting in June now so the markets are slowly adjusting to that reality the interesting thing about it is the stock market’s still pretty
Close to the all-time highs we really haven’t seen a pullback yet and the kicker for this is simple right you have a market where everyone is starting to chase this is exactly what we’ve seen going past to like you know you look at a scenario like what we saw in 2021
Where there were a lot of bad signals out there of what was going to come in 2022 but money was just saying I don’t care about valuation I don’t care about technicals I am just going to jump in and it creates these Bubbles and a good
Example of the bubble right I mean take a look at smci this is one of the favorite out there of the meme crowd right if we look at this today look at this I mean this runup was incredible Up Up and Away we’re talking about from $300 at basically mid January so one
Month ago and where are we as of this morning we were trading at 1080 before a collapse back down this is bubble territory and by the way I’ll even go on record and say this is this is the same sort of thing the atmosphere in the
Market is the same as when I called the top in Bitcoin in six at 69,000 in 2021 it is exactly the same psychological sentiment out there I think if we started to see a really bad recession then inflation does get down to the point where it could be deflationary but
If we go into kind of one of these stagnant markets where you know for the most part we’re in a slight recession it’s kind of things are slow things are kind of f for a long period of time where you’re not really seeing a huge draw down in the economy where it’s a
Deep recession then I think you have the pressures of increases in wages that still get passed through and we’ve seen that by the way I think the PPI is showing us that the CPI is showing us that that that producers they’re paying so much extra you have people that were
Making a minimum wage that are now making two to three times that minimum wage that has to be passed on to the consumer to keep the earnings flowing from a lot of these big companies and so it’s not a one-year event right I mean if you pay someone $20 instead of $10 an
Hour you can’t really just double the prices that you’re charging your consumers but what you do is you say okay well I’ll I’ll raise it by 33% this year 33% the next year and the next year as well to bring my profit margins back in alignment so so I think that’s the
Kicker is how bad is the recession and what do we see inflation has been a topic of keen interest for many and Gareth shares his perspective by comparing the current economic situation with that of the 1970s they forecast that inflation could reach the 3% Mark and then struggle to
Fall below that threshold on Friday the labor department released its producer price index which measures in before it impacts consumers according to the report Prices rose by 0.3% from December to January following a slight drop of minus 0.1% from November to December year-over-year producer prices increased by a modest 0.9% in January Gareth
Cautions that if inflation remains above 3% and starts to rise further it could pose a challenge for the Federal Reserve they would face difficulties aggressively cutting rates to boost the economy without potentially exacerbating ating inflationary pressures despite the challenges Federal Reserve policy makers remained composed and saw the overall
Progress toward the fed’s 2% inflation Target as positive they also noted a slight moderation in labor market strength but overall the economy appears on track for a soft Landing let’s get back to the interview I do believe that we’ll get down to that 3% handle and
Then getting from 3 to two is always the toughest thing and and I continue to see the the reminiscences of of what happened in the 19 1970s and in fact I can show my chart right here and we can just kind of take a look at it but
Basically what we see here is this was the 1970s and you had that initial uptick and then the FED obviously kind of stepped aside and and inflation came down and then we had another wave of inflation went higher the same thing pulled back we had another wave higher
As well and then finally it got back under control and I really think that you know as much as the FED has said they don’t want to repeat what vulker did if you look at the 10-year yield right the 10-year yield the FED fund
Funds rate still at 5 and A4 to 5 a half yet interest rates on the 10e are back to the 4ish percent level in fact we were below four so you’ve seen those those interest rates come back down even without the FED lowering rates and what that does is it starts to initiate
Inflation again it starts to Kickstart that inflation because borrowing money is getting cheaper again and I think you have to look at many things right so just a couple things I want to point out is that you know you’ve seen the balance sheet of the Federal Reserve drop just a
Little bit it was 9 trillion it’s down to to 7.5 trillion so the the FED has kind of started to contract that a little bit but the kicker is if you look at all these auto loans credit card debt US public debt they’re all surging to
The upside and so that’s making up 10 tenfold the amount of the the the pullback in the balance sheet and again just to show you in comparison this is the pullback here right this is where we were we were trading around 9ine trillion they’ve only been able to
Reduce their balance sheet to about $7.5 trillion and that’s while the US deficit has risen multiples of that over just the couple years right so again my point being is that when it comes down to it you’re in a scenario where the FED yeah they’ve tried to tighten but the market
Has actually loosened and then you talk about the extra money in the system from credit card debt to auto loans to the US deficit and it really hasn’t been that tight and I think that’s probably why the stock market is at all-time highs as well okay so the 70s was a major period
In economic history there was a huge uh spike in oil prices as you know from the OPEC oil crisis um it’s going to take a lot to bring back that era in the sense that we’re going to have to have a major Supply crunch or some sort of major
Shock in the economy um to bring inflation up to those levels right and and and to be fair to be fair David I don’t think that’s going to happen like I’m I’m not anticipating inflation going to 10 and then to 20% but the kicker is this right is that the Fed was banking
On inflation getting to three and going below 3% so that they could stimulate and cut rates when the economy slows if we’re starting to even up tick from 3 to 4% how does the FED start to cut rates aggressively at that point knowing the repercussions of cutting rates is to
Stimulate inflation again and so I think that the more important thing here is just if you can’t get the inflation rate in this period below 3% and we start seeing an economy that’s weakening and by the way Cisco laying off 4,000 people I mean we’ve seen layoff starting to to
Compound we’ve seen um the retail sales just came out a couple days ago and those are starting to get weak Additionally the price of gold is taking advantage of a sluggish performance in the US treasury bond yields and geopolitical tensions in the Middle East the latest developments include news of
A Biz flagged UK registered and Lebanese operated ship that was attacked in the bab Al mandab straight Red Sea the gold market has been showing resilience amidst various market conditions and geopolitical developments as discussed by Gareth Solway how do you perceive the current status and outlook for the gold market especially concerning
Geopolitical tensions and the ongoing economic shifts share your thoughts in the comment section if the video resonates with you join our community by subscribing to our Channel and enabling notifications with the Bell icon thank you for being a part of our community that
