Our Top Pick for the year ahead is the SPDR Gold Trust (GLD); the positives going for gold are far greater than those for the other markets, including stocks, bonds, currencies, cryptos and more, suggests Mary Anne and Pamela Aden, editors at The Aden Forecast.
These are several reasons we expect strength in gold. At the top of the list is inflation and the Federal Reserve. The Fed is determined to bring inflation down, and despite the recent softening in the inflation numbers, it’s set to stay high in the months ahead.
This means the Fed will keep interest rates high, and this in turn will keep downward pressure on stocks and bonds. In fact, based on various reliable indicators, the stock market is bearish and it’s set to fall further in 2023. This will make gold a more attractive option.
At the same time, the US dollar is set to decline. And since gold and the dollar tend to move in opposite directions, a weaker dollar will drive more investors to the tried and true safe haven, which is gold.
Remember, gold has a 5,000 year track record as a store of value. The world’s central banks know this and that’s why they’ve been buying gold at the fastest rate since the 1960s. They’ve been diversifying away from US dollars and increasingly opting for gold. This has been one big factor driving up the growing demand for gold.
It’s also important to remember that gold has been rising in its current upmove since 2015. The rise has been slow and steady and it’s been consistent. Again, based on various indicators, gold is poised to “take off” in the month ahead. In other words, gold is set for a strong upmove, which is likely to rise to a new all-time record highs.
An easy way to buy gold is via the SPDR Gold Trust — an exchange traded fund for gold. Buying gold is our top recommendation for 2023. We think you’ll be glad you did.