Gold prices find new footing - but what's next?

by JasonLast updated Feb 6, 2023Category: Gold Market Trends / Investments

After seeing gold prices rise to their highest point in almost a year, last weekend it took a plunge. Following a strong jobs report on Friday, the precious metals market reacted quickly and negatively; falling from a high of $2568.77 to $2497.87 (-2.71%). The jobs report gave investors some reassurance that more interest rate hikes are less likely, making gold less desirable. But what will we see in the coming months?

Following Canada's interest rate hike 2 weeks ago, they indicated that they were taking a break from more changes. U.S. Federal Reserve Chair Jerome Powell commented on that, saying it's a risky proposition and that they wouldn't be following Canada's lead. The following week, the Fed raised their interest rate to 4.75% and indicated that more may be to come. While it might be less likely now after the jobs report, it's still a real possibility. Many criticized his approach, saying that the market needs time to wait and see how it reacts to the hikes. Powell pushed back saying it's best to be cautious and indicated that interest rates may rise as high as 5.25%.

"It's very difficult to manage the risk of doing too little and finding out in six or 12 months that we actually were close but didn't get the job done and inflation springs back," Powell said.

There are also other factors that affect inflation and gold prices, such as the war in Ukraine & the recent pandemic. Both of which the Fed mentioned as contributing to "elevated global uncertainty" and the rising costs of goods. With so much uncertainty in the world, this may be the highest gold prices we see for a while.

And if you're looking to get the most for your gold today, we offer the highest gold prices in the GTA and are always able to help! Whether you have gold jewelry, scrap, bars, coins, we take it all! Even if you're not sure what you have, we can check for you in seconds. So avoid the uncertainty, and get the guaranteed most for your gold!

Business Hours

Mon

9am - 8pm

Tue

9am - 8pm

Wed

9am - 8pm

Thu

8am - 8pm

Fri

8am - 8pm

Sat

10am - 6pm

Sun

12pm - 5pm

Contact us

Cash M Company
9025 Torbram Rd.,
Brampton, ON L6S 3L2

©2020 - Cash M Company. All Rights Reserved

CONNECT WITH US