According to Kitco News, financial expert and President and Chief Operating Officer of Asset Strategies International, Rich Checkan, said that with the escalating tensions in the Middle East, gold prices have risen by over $160 in the past month. However, if a third party participates in the conflict, gold prices will experience a greater increase.
With the outbreak of the Israeli-Palestinian conflict, gold prices have risen from the level of $1840 per ounce to the level of $2000 per ounce, driven to some extent by the political war premium. However, if the conflict spreads and introduces other participants, this may only be the beginning, "Checkan said in an interview with Michelle Makori of Kitco News." If a national institution directly participates in the conflict, I think gold prices will rise significantly. "" We may see $2200 per ounce. But unless another country participates, I don't think gold prices will rise significantly
The World Bank has issued a warning that if tensions in the Middle East continue to escalate, according to one of its worst-case scenarios, oil prices may soar to $150 per barrel.
After the Federal Reserve kept interest rates unchanged twice in a row, Checkan stated that the Federal Reserve may not raise interest rates further.
He said, "The US government is unable to repay its debt. The debt is $33.5 trillion. They are currently unable to pay interest. Federal Reserve Chairman Jerome Powell hopes to maintain a firm stance for a sufficient period of time. But I don't think he has enough policies to control inflation." He said, "The Federal Reserve has already damaged banks' balance sheets and is also hitting the middle class When they go to refinance this debt, everything will be in trouble
The Federal Reserve has changed its approach to losses, but that does not mean it is not a real loss.
Checkan pointed out that as interest rates rise and credit card debt continues to rise, consumers become weaker and people have to sell their gold to raise short-term cash demand.
He pointed out, "We are starting to see middle-class investors selling gold, which is a liquid asset. They are not completely selling, but they have sold enough gold to meet short-term demand." According to data from the World Gold Council, demand for gold bars and coins decreased by 14% in the third quarter of this year. Checkan added that this reflects the way the American middle class invests in its gold.
