Record purchases by central banks could raise gold prices to $4,000 in 2023

Swiss Asia Capital’s managing director and chief investment officer, Jörg Kenner, expected it to go up gold prices to $4,000 an ounce in 2023, as interest rate hikes and recession fears keep markets volatile.

He said that the price of gold may reach between $2,500 and $4,000 sometime in 2023, according to what he told CNBC, and Al Arabiya.net reviewed it.

He added that there is a good chance that the gold market will witness a big move, adding, “It will not be 10% or 20% only,” but it is a move that “will reach new highs.”

Kenner explained that many economies may face a “slight recession” in the first quarter of 2023, which could lead to many central banks slowing down the pace of raising interest rates and making gold more attractive immediately, noting that gold is the only asset that every bank owns. central.

According to the World Gold Council, central banks bought 400 tons of gold in the third quarter, nearly double the previous record of 241 tons during the same period in 2018.

Kenner also expected investors to look to gold as inflation remains high in many parts of the world. “Gold is a good hedge against inflation and is a great catch during stagflation and a solid addition to the portfolio,” he said.

Despite strong demand for gold, Kenny Polkari, chief market strategist at Slatestone Wealth, disagreed that prices could double in 2023.

Polkari argued that gold prices will see some decline and resistance at $1900 an ounce. He said prices would be determined by how inflation responds to higher interest rates globally.

Earlier this month, China’s central bank announced that it had added $1.8 billion worth of gold to its reserves, bringing the cumulative value to about $112 billion, Reuters reported.

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