There is only one way to say this, so I’ll keep it relatively simple. Gold is as stable as ever and it’s climbing while the banks continue to crumble to the ground! On Thursday, gold prices increased somewhat, moving closer to their top from the previous session.
If you’re not familiar with what happened in the previous session, gold climbed too and gains were attained after worries about the banking crisis increased as a result of the ECB’s decision to boost interest rates despite persistent threats of financial instability.
Spot gold was up 0.1% at $1,919.31 per ounce as of 1:53 p.m. EDT on March 16th. This is the highest climb since early February, when on Wednesday, March 15th gold hit $1,937.28. U.S. gold futures, however, ended the day at $1,923 per ounce, down 0.4%.
Many investors were taken aback by the ECB’s decision to raise rates by 50 basis points despite the turmoil in the financial markets, which stoked concern and maintained demand for gold as a safe haven.
What does this mean? It means you need to invest in gold if you’re looking for a safe bet. Considering inflation and everything else, my suggestion is go for the gold!
Oka, now that a 25 bps rate increase is anticipated, attention will be on the upcoming U.S. Federal Reserve policy meeting. These meetings are lengthy and often hard to read into, but they’re essential.
One important thing to understand is that the opportunity cost of owning the non-yielding asset could increase with higher rates, despite the fact that gold is typically regarded as a hedge against economic risks.
Nonetheless, as shares, bonds, and the value of the dollar declined, gold was aided by these losses in broader financial markets.
The short-term prognosis for gold appears bright, but bullion might be under pressure if the Fed decides to boost rates by 50 basis points the following week. As for other news, it shows that the labor market is still strong because fewer Americans than expected last week filed new claims for unemployment benefits.
What does all this mean for your retirement account? Well, you could be at risk of losing a lot if you’re not safely diversified today. Do yourself a favor and spend time educating yourself about gold before the dollar turns to complete dust!
SEE ALSO:
Reasons Why Rich People Are Investing Heavily In Gold
Start a Gold IRA Account (Guide For Newbies)
About Edwin Cannon
Edwin Cannon has spent his entire career in the financial industry and specializes in alternative investments and surviving marketing turbulence. He started My Retirement Paycheck to help educate consumers about retirement investment options that aren't typically introduced by advisors.