Since the start of November 2022, the prices of gold have been on a constant decline.
The rumors about the upcoming economic recession and excessive purchase of gold from the central banks across the globe played a massive role in its price decline.
Although all the price troubles, gold has started the new year with a strong rebound in its price. Forex experts are confident that this precious metal will go further high in price in 2023. Strong market performance is expected from this precious metal.
Earlier on Tuesday, the price of gold reached a six-month high at the start of the trade. It has been predicted that similar price hikes will keep appearing throughout 2023.
The price of spot gold was up at $1,850 per troy ounce. Similarly, gold features are seen an increase in its price by 1% as it touched $1,844.10.
Ole Hansen seems to be Bullish on Gold
In his recent interview, the senior commodity strategist at Saxo Bank, Ole Hansen, said 2023 would be a price-friendly year for global markets.
The recession and stock valuation risks will force central banks to increase their interest rates.
This will weaken the USD and help the gold reserves to rise against the USD, eventually giving momentum to the dollar price.
Commenting on the inflation, Ole Hansen said that indicators are very clear that inflation will return to the expected level of sub-3% at the end of 2023.
All these outlooks are backing gold and will give it the momentum it has been searching for since the start of November 2022.
Ole encourages investors to add gold to their portfolio, as gold will go to the top. “Those who want to earn sustainable profits and also want to avoid financial hassles must go for gold,” Ole said on Tuesday.
Spot Gold Price Performance of the Past 1 Year
The gold price has been vulnerable since the start of November 2022. As the price of USD devalued, central banks across the globe purchased a record amount of gold, contributing to the de-dollarization. This trend is most likely to continue in 2023.
Hence 2023 is providing a strong foundation for the rise in the price of USD. In addition, another key event that will further decide the price of gold is the minutes of the Fed which is scheduled to take place on Wednesday.
Moreover, on Friday, the U.S. authorities will share a detailed report about jobs in the U.S. These events are significant in deciding the future of gold.
However, gold was trading below the $1700 mark in November. In December 2022, the price of gold rose and surpassed the resistance level above $1800. But it was still low from an all-time high in 2022.
By the end of 2022, gold was exchanging hands at $1842. Moving onward, gold is expected to go all the way up to the $1878 mark.
Gold Is the Touching Distance of Going All-Time High in 2023
The entire narrative of gold price hikes and surges is revolved around the government’s monetary policy. The central banks slowed down the hikes in interest rates to counter the recession. But this act has also slowed down economic growth.
Experts are still determining whether this policy will last till the end of 2023. On the other hand, inflation is likely to be in a well-controlled range. This shows that market growth will be fast, and trade will rise.
That is why gold can soon go bullish, and its price can go all out at $2,100 per ounce. Central banks are also continuously backing their reserves with gold and will continue to buy more gold.
Soon the demand for gold will be high and buying pressure on gold will intensify. As central banks across the globe are heading towards the gold hunt, the upward momentum in gold’s price can continue for a couple of years.
The economic and forex experts of August Equity have said that by the end of FY 2023, the price of gold will be increased by at least 20%.