The Federal Reserve Could Send Gold to $1,900 this Year

by | Dec 8, 2022 | Markets

Gold prices could test $1,800, even $1,900 before the year is out.

All as investors anticipate slower rate hikes from the Federal Reserve.  In fact, Fed Chairman Jerome Powell already said the central bank could moderate the pace of interest rate hikes as soon as December.  “It makes sense to moderate the pace of our rate increases as we approach the level of restraint that will be sufficient to bring inflation down,” Powell said as quoted by CNBC. “The time for moderating the pace of rate increases may come as soon as the December meeting.”

On expectations that’ll happen, gold prices are up another $1.01 at $1,788.17.  That’s even better news for the gold investment ideas we shared with you the other day.  Those included:

Barrick Gold (GOLD)

We last spoke about Barrick Gold on Tuesday, as the stock traded around $16.40.  It’s now up slightly at $16.66.  If GOLD can break above resistance around $17.34, it could see $18.

Barrick Gold is one of the biggest companies in the gold industry. Operating mines and projects in 18 countries in North and South America, Africa, Papua New Guinea and Saudi Arabia, its portfolio spans the world’s most prolific gold districts in the world.  The company, which expects to produce about 4.5 million ounces of gold per year through 2030.

VanEck Vectors Gold Miners ETF (GDX)

We mentioned the GDX ETF, as it traded around $29.  It’s now at $29.41.  If GDX can break above $30, it could see $32 shortly after.

One of the best ways to diversify at less cost is with an ETF, such as the VanEck Vectors Gold Miners ETF (GDX).  With an expense ratio of 0.51%, the ETF holds positions in Newmont Corp., Barrick Gold, Franco-Nevada, Agnico Eagle Mines, Gold Fields, and Wheaton Precious Metals.

Sprott Junior Gold Miners ETF (SGDJ)

We also mentioned the SGDJ ETF, as it traded around $29, as well.  It’s now up slight at $29.60.  If it can break above $31.50, it could potentially test $33 shortly after.

With an expense ratio of 0.35%, the SGDJ ETF seeks investment results that correspond (before fees and expenses) generally to the performance of its underlying index, the Solactive Junior Gold Miners Custom Factors Index. The Index aims to track the performance of small-capitalization gold companies whose stocks are listed on regulated exchanges.  Some of its top holdings include Lundin Gold Inc., Seabridge Gold, Equinox Gold, Victoria Gold, Westgold Resources, Osisko Mining, K92 Mining Inc., and Novagold Resources to name a few.