According to Gareth Soloway, InTheMoneyStocks.com Chief Market Strategist and President of VerifiedInvestingEducation.com, the S&P 500 will drop 20 percent this year and gold prices will reach $2,300 as “anxiety, denial and panic” sets in and “enthusiasm” evaporates. Soloway explains his reasons for this bullish gold price prediction.
There will be more shakes!
Gareth Soloway said in a statement that the biggest move of the bear market is probably on the horizon. Soloway has a downside target of 3,300 on the S&P this year. It also predicts it will drop below 3,000 in 2024. Meanwhile, S&P is currently trading around 4,100.
In March 2023, three banks (Silvergate, Silicon Valley Bank and Signature) went bankrupt. The Treasury Department then stepped in to bail out the FDIC and Federal Reserve depositors. cryptocoin.comAs you follow, the Federal Reserve has increased interest rates by 475 basis points since 2022. That’s why Soloway suggests the Fed will cause “further jolts” in banking. It highlights the case of First Republic Bank, which has lost 95% of its stock price since the beginning of this year. Based on this, Soloway makes the following statement:
I think that the regional collapse that we have seen and continue to see is a precursor, a jolt. What the Fed is doing right now is shocking the world in terms of raising interest rates so quickly to try to stop inflation. And I’m sure there will be more concussions.
An important consideration for gold price forecasting: de-dollarization
According to a widely acclaimed report by Eurozon SLJ Capital, de-dollarization is occurring at a “striking” pace. Also, the US dollar has declined from 73 percent to 58 percent of global reserves since 2001. The dollar-freeing process has accelerated even more since Russia’s war with Ukraine. Because the US-led sanctions against Russia led to the use of the dollar as a weapon. The BRICS (Brazil, Russia, India, China and South Africa) countries responded by calling for a new reserve currency. Some, such as Brazil and China, have made agreements to trade in local currencies.
While Soloway acknowledges that nations are abandoning the dollar, he estimates it will take a decade for the dollar to lose its status as the main reserve currency. On this issue, which is also an important factor for the gold price forecast, Soloway says:
I have no doubt that we are moving towards a different reserve currency. In my view, I don’t think the US dollar will be the reserve currency in ten years… It will still be an important currency, I just don’t think it will be the main currency anymore.
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