AMMAN — Last week, gold prices saw
their highest gains since mid-November, and the price of the precious metal
rose by 2.2 percent on Friday to reach $1,960.29 per ounce — the highest level
since April of last year — according to Khaberni.
اضافة اعلان
Over the past week,
gold prices rose by 5.3 percent in the wake of the
US Silicon Valley Bank collapse, which highlighted
the weakness of banks in the face of sharply increasing interest rates.
Commodities supercycleIn spite of a looming recession,
commodities are in a supercycle, and gold is likely to outperform, according to
the
American Wells Fargo bank.
The term “
supercycle” refers to a time of
consistent and steady price increases that lasts for over five years and is
usually the result of strong demand for raw or manufactured materials.
"The shortest supercycle on record is
nine years,”
John LaForge, head of real asset strategy for Wells Fargo, told
Kitco, a gold news and analysis outlet.
"Your worst case in a supercycle is for gold to double... At the beginning of this new supercycle, gold was at $1,500. So, based on past cycles, you're probably looking at $3,000 at a minimum."
“We are only in year three,” he continued.
“We have at least another six years to go.”
The commodity supercycle can be very
destructive, LaForge explained. “It's probably going to force the hand of a lot
of financial players. Supercycles create inflation. And that forces central
banks to hike rates at a time when growth is slow.”
Will gold prices reach $3,000 in 2023?Since hitting record highs surpassing $2,000
per ounce in 2020, gold has been underperforming.
"Your worst case in a
supercycle is for gold to double," LaForge said. "Technically, a supercycle has to be
marked with commodity as a group. And that was in March 2020. At the beginning
of this new supercycle, gold was at $1,500. So, based on past cycles, you're
probably looking at $3,000 at a minimum."
Gold could be the “big surprise” that
markets are underpricing this year, he added.
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