Precious Metals Post Their Biggest Weekly Gain This Year Amid Concerns Over Financial Crisis 2.0

Phil Carr
Published: Mar 17, 2023, 15:09 UTC

Precious metal prices have been on an explosive run this month, notching up a third consecutive week of gains as concerns mount over another 2008-style banking crisis – bolstering demand for safe-haven metals.

Gold, FX Empire

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Fed’s Aggressive Interest Rate Hike Campaign Creates Financial System Vulnerabilities

Exactly one year ago to this day, the Federal Open Market Committee embarked on their most aggressive interest rate hiking campaign since the 1980s. The goal: to arrest a stubborn inflation wave that central bank officials spent the better part of a year dismissing as “transitory.”

Historically every time the Federal Reserve has engaged in an interest rate hiking cycle, they have kept going “until something eventually breaks”.

And that’s the exact situation they find themselves in, once again!

Last weeks, collapse of three prominent U.S banks – Silvergate Capital, Silicon Valley Bank and Signature Bank highlighted vulnerabilities in the financial system to sharply higher rates, while a rout in Credit Suisse shares added to market turmoil – wiping out over $60 billion in value from European banks, in a single day alone.

Clearly conditions right now are very different than what the Fed was looking at one year ago, in March 2022. Banks are in danger of failing, risk assets such as equities are wobbling and recession angst is rising fast.

Savvy Traders Turn to Precious Metals

This is incentivizing savvy traders to diversify their holdings into Precious metals and Commodities in general to maximize on the dual benefits of safety and high returns on offer in this new economic climate, we now find ourselves in.

The ‘crisis on top of crisis’ that is currently unfolding has sent Silver and Platinum prices surging to multi-month highs – with both Precious metals racking up impressive double-digit gains in a matter of days.

Meanwhile, Gold has been on an unstoppable run this month, tallying up its third consecutive week of gains on Friday – sending the yellow metal skyrocketing above $1,950 an ounce.

Since the final quarter of 2022, Gold prices have gone parabolic rallying over $350 an ounce from their November lows of $1,600.

The bullish momentum also split over into Gold priced in other currencies such as British Pounds, Euros and Australian Dollars, just to name a few – sending prices skyrocketing to all-time record highs.

The big question now is will Gold price denominated in US dollars be next to hit all-time highs?

Commodity Price Forecast for March 17, 2023

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

About the Author

Phil Carrcontributor

Phil Carr is co-founder and the Head of Trading at The Gold & Silver Club, an international Commodities Trading, Research and Data-Intelligence firm.

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