Gold hovers close to $2,000 amid market turmoil
Yahoo Finance’s Ines Ferre joins the Live show to discuss how investors are reacting to gold following turmoil across the U.S. banking sector.
JULIE HYMAN: Gold is hovering close to $2,000, as investors flock to precious metals amid market turmoil. Yahoo Finance's Ines Ferré is at the YFi Interactive with more. Really interesting, Ines, because gold's sort of haven status hasn't-- didn't necessarily hold up all through the pandemic, yada yada. But now, it's definitely coming back into vogue.
INES FERRÉ: Yeah, that's right. And there's a couple of reasons for that. One is that investors maybe believing that the Fed is nearing the end of its tightening cycle. The other one is that inflation still is elevated. And then, of course, you also had the banking crisis. So that definitely-- I was speaking to a strategist, saying that definitely saw flows of money going into gold. Seen as a safe haven.
So over the last month-- I want to pull up a monthly chart. So you can see gold up 7%. It was yesterday around the $2,000 level. Now, the-- gold hasn't seen these prices since March of last year of 2022. So if you just take a look. I'm gonna put up an intraday chart.
It's right now at $19-- $1,965. Now, the previous high was $2,074. I spoke to a strategist saying that he believes that this year you may see a little bit of a pullback at first, but then he thinks that gold will go to $2,100 this year. But it's really next year in 2024 where gold is expected to go to-- some strategists are saying-- $3,000 an ounce, $3,500 an ounce.
Now, if we just take a look at silver futures. Silver is at $22.56 an ounce. As far as silver is concerned, if there is a recession, I am told silver may not perform as well as gold would perform because silver is used in the industrial sector. So that would be a reason why silver may not initially perform as well. But over the next three to four years also, precious metal bulls are saying gold, silver, these are safe havens to go to, guys.
JULIE HYMAN: Interesting stuff. Thanks so much, Ines. Appreciate it. We've been watching those metals closely.