- The gold market continues to see solid support within striking distance of $2,000 an ounce. While gold prices can continue to perform well through the rest of the year, a new all-time high depends on how the current global banking crisis continues to unfold, according to one market strategist.
At the same time, the Federal Reserve has unleashed a record amount of liquidity through its discount window. Last week, banks borrowed nearly $153 billion to shore up their capital requirements. The previous record of $111 billion was set during the Great Financial Crisis. Although gold may not see a sustained break above $2,000 just yet, Hooper said that aside from the banking crisis, there are other factors that will keep prices well supported through the rest of the year.
Hooper added that this shift in monetary policy should weaken the U.S. dollar, providing a tailwind for gold.
Banking crisis is not resolved; the CB's only slowed down the downward trajectory. The bank losses are being consolidated, and the CB powder keg is going to run dry - soon.
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