As the financial markets enjoy a much-needed uptrend, finding profitable investments remains crucial. Peter Schiff expects a major gold breakout in the coming days and weeks. The precious metal recently broke through the $1,900 price barrier.
Peter Schiff Predicts A Gold Rally Continuation
Like other assets and markets, precious metals had a rough end to 2022. Although gold and silver performed far better than other investments, there was a lot of bearish pressure. Unlike assets like Bitcoin and other cryptocurrencies, bullion has made a successful comeback. Continuing that trend may prove a bit more difficult, although Peter Schiff remains hopeful.
Gold rallied after a price dip to below $1,650 per ounce in November 2022. It rose to over $1,760 by early December and has continued its uptrend since. Although there aren’t “monster gains” to speak of, the push to $1,900 has been remarkable. Unlike other markets, bullion noted a solid uptrend since late December and showed no sign of slowing down.
That leads Peter Schiff to believe there’s more to come. At its current price, gold seems valued high. However, global economic concerns have not diminished, and more pain is on the horizon. As a result, uncertainty will drive investors to safe-haven assets like precious metals and potentially cryptocurrencies. However, Schiff expects Bitcoin to go back down relatively soon and urges people to sell BTC now.
Despite consistant strength in #gold, supported by extremely favorable technicals and fundamentals, gold stocks continue to be dragged higher. This indicates that investors and speculators are still highly skeptical of the rally. That's another reason why it's likely to continue.
— Peter Schiff (@PeterSchiff) January 12, 2023
The technical fundamentals hint at a gold price breakout in the first half of 2023. Surpassing $2,000 per ounce isn’t out of the question and may not prove too difficult to achieve either. In addition, the gold stocks continue to move up without meeting much resistance. Market participants intend to push these values higher and will do so for the foreseeable future. That is, despite some skepticism traders and investors may have.
Setting A New All-Time High?
The big question is whether bullion can surpass its previous market highs. Peter Schiff is inclined to think so. So returning to $2,000 per ounce should be fine. Going beyond that level, however, is a different matter. In addition, the $2,000 price level may act as psychological resistance more than anything else. The market tried to surpass that level twice since mid-2020 and was rejected violently afterward.
Moreover, the 2022 market dip – after attempting to break $2,000 – was steeper than the 2021 one. In 2021, gold dipped to the low $1,700 range before shooting up again. Last year, the prices went 5% lower. However, this year has been very bullish, with solid green candles day after day. It will be interesting to see when and where the gold rally ends and whether Peter Schiff is correct.