Gold in 2023: What is ahead of us?
02. 02. 2023
According to Bank of America, 2023 will be quite an interesting period. They expect US equities to stagnate, while commodities will see a period of growth. What will the next year look like in the context of gold?
A period of recession in the entire economy and the continued increase in FED rates will affect the lives of consumers and the budgets of companies. Finally, according to Bank of America's outlook, the basic interest rate will have to be lowered. Another mild recession is expected, which should put commodities and precious metals in particular “back into the game”.
In particular, according to Bank of America, gold is expected to return to around USD 2,000 per troy ounce. By contrast, government bonds are expected to decline and the US dollar to weaken. These are all factors that open the door for gold to grow. After all, we can observe a rise in the price of gold as early as mid‑November 2022.
Precious metals should also be supported by central bank purchases, which will remain relatively strong and stable in 2023 as predicted by Heraeus. Compared to the last year, banks are likely to buy slightly less. However, some countries continue to buy with a fixed regularity, which should support gold. Heraeus forecasts gold at USD 1,920 per troy ounce for this year.
Private investors can also be expected to look for an asset that provides security for their money, which will support the gold price. By contrast, US equities will rather stagnate at least in the first half of the year.
So this year will definitely not bring investment boredom. Gold is likely to rise and the commodity cycle that various market analysts had predicted in the past will become a reality. It seems that at least the first part of this year will be a good time to buy gold at a favourable price.