Sprott Physical Gold Trust [PHYS] Stock Forecast

Rising interest rates have been putting downward pressure on gold, but the shaky banking sector recently pushed prices past the $2,000 mark. With investor confidence in banks waning, this could continue to bolster gold prices as they seek to add precious metals for safety.

While gold equities were up almost twice as much as gold in January, they were down more than twice as much in February. On February 13, B2Gold announced an agreement to acquire junior developer Sabina Gold & Silver in an all-share transaction.

The macroeconomic environment continues to center around inflation. It could either push investors to purchase more gold or accumulate riskier assets, depending on the latest inflation report.

So far, central banks have been voraciously eating up the global gold supply even with the expectation that rising interest rates will eventually subside.

Gold prices have been riding a six-week winning streak in terms of gains, but key economic data points could potentially stifle the rally. Nonetheless, gold hasn't seen this type of winning streak since the summer of 2020, a few months after the COVID-19 pandemic upended the broad stock market.

Gold could shine brighter in 2023 if central bank activity is an indicator of what's to come. Lately, central banks have been adding more gold, according to the World Gold Council (WGC).

I am structurally bullish on gold and oil with a multi-year timeframe. Between the two, gold likely has the advantage fundamentally and in terms of current momentum over the next 6-12 months.

Bitcoin's correlation to gold has ramped up in recent weeks, causing some investors to incorrectly speculate that it could once again contend with the yellow metal as an inflation-hedging store of value in the event of widespread economic collapse. Over the past 40 days, Bitcoin's correlation with gold is at .50.

Spot gold prices were up 1% on Monday with the U.S. Dollar finally showing some weakness, slipping 1.2% amid faltering Treasury yields. Gold was at $1,656.09 and moving away from the two-week low it touched last week.

Gold and precious metals, like many sectors of the economy, have had a harrowing 2022. However, the gold market is experiencing some October momentum as fears of a global recession renew safe haven interest in the metal.

Sprott Physical Gold Trust is a CA stock , located in Toronto of On and trading under the symbol PHYS

Sprott Physical Gold Trust stock price is $15.6 today.

Yes, Sprott Physical Gold Trust is a publicly traded company.