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Gold Soars Past $2,000 Per Ounce

Gold Soars past $2,000 to around $2,068 per ounce, nearing its all time high of $2,075, as oil prices rise amid an announcement by the U.S. of upcoming sanctions against oil exports from Russia. But expect a near-term pullback as gold investors take profits.

Gold likes uncertainty and is a safe haven for traditional investors. With much uncertainty in the world today—from high oil prices to high inflation, fears of recession and the ongoing war in Europe with Russia and Ukraine—gold soared past $2,000 per ounce to around $2,068 on March 8, 2022. The rally can be attributed to rising oil prices which jumped to $130 per barrel, its highest level in 14 years, according to Kitco News.

This is a parabolic move for gold, which had been hovering in the $1,800 for much of 2021 and early 2022. We do expect to see some pullback soon back to the upper $1,900 levels, as investors take profits. Gold bulls, however, will be looking for gold’s next resistance level at $2,100, although even $2,200 – $2,300 gold for the longer term does not appear out of the question at the moment once these resistance levels are met.

We haven’t seen these levels since August 2020, but at the first signs of fear in the markets subsiding, a gold correction is likely to follow. One factor to look for that could trigger a nearer term correction is the cooling off of tensions in Ukraine. Conversely, escalating tensions would of course propel gold higher. Many investors also believe that even with eventual resolutions in Ukraine, $2,000 gold is here to stay due to continued instability and lack of confidence in financial markets. Either way, we should expect at least $1,900 – $2,000+ gold for some time to come and perhaps even stabilizing around this level.

We can also expect a possible rise in the gold price after the upcoming Fed meeting next week, in which the Federal Reserve is expected to announce raising interest rates, which could trigger a sell off in stocks fomenting yet another correction in the stock market and causing investors to flock to the yellow precious metal for financial security, especially as gold trends upwards in light of recent world events.

If you are investing in precious metals like gold and silver for the long term, be sure you have physical gold and silver, rather than merely investing in electronic funds, which defeat the purpose of owning physical assets.

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