Gold Prices On Course For Best Year Since 2008 Global Financial Crisis – What’s Next?

Gold prices are now only $40 away from hitting all-time record highs of $2,075 an ounce reached in August 2020.

First Quarter Performance

Gold closed the first quarter of 2023 trading just below $2,000 an ounce, but the bullish momentum has spilled over into April. The precious metal has been on an unstoppable run, skyrocketing from the $1,800 level at the beginning of March to above $2,000 an ounce – not once, twice, but four times over the past 10-days – notching up an impressive gain of over 12%, in the past month alone.

Gold prices have now risen for a second straight quarter in a row – up over 28% from the November lows of $1,600 an ounce – scoring their biggest back-to-back quarterly gain ever in history.

There are plenty of reasons why Gold prices are on the move, but the primary catalyst fuelling the explosive run this week – is a decision by the Organization of the Petroleum Exporting Countries and Russia — also known as OPEC+.

On Sunday, Oil prices skyrocketed 8.5% within literally “seconds” of the Monday open, after the oil-producing cartel announced they would cut production by more than 1 million barrels per day – a surprise move, which has thrown further fuel on the inflationary fire and stoked fears of a knock-on effect on the global economy as a whole.

Inflation and Commodity Prices

As traders know – there is a strong correlation between inflation and Commodity Prices. When inflation accelerates at a red-hot pace, so does the prices of Commodities.

The announcement comes at a time when inflation is only just starting to slow after reaching the highest it’s been in four decades. According to leading economists, this will “most likely” increase inflation and derail global central banks’ efforts to bring down inflationary pressures. In recent days, some economists even raised their forecasts – signalling that the production cuts will enviably lead to oil prices pushing back above $100 a barrel.

Gold’s Potential Future

Which in other words implies that Gold prices have a lot more room to rise and once they clear the all-time record highs set in August 2020 – the rally might not stop there!

Extraordinary times create extraordinary opportunities and right now, we are amidst one of the greatest eras of wealth creation the world has seen. Whichever way you look at it, the case for Precious metals in a well-diversified portfolio has never been more obvious than it is right now!

Gold Price Forecast for April 5, 2023

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions: