2023 began with an increase in the price of gold, which had increased by 2.36% in just the first week of the year. Since November 3, 2022, silver has soared 22.31% against the dollar, while gold has increased 14.55% over the last 65 days.
The demand for gold has risen over the last seven days in line with market prices since the beginning of 2023. Specifically, the price of gold increased from $1,823 to $1,866 per troy ounce. On the other hand, a troy ounce of fine silver is down about 0.58% year to date, while gold is up 2.36% against the dollar.
Both gold and silver have risen significantly over the past two months relative to the dollar, with gold rising 14.55% and silver rising 22.31%. It is not unrealistic for this yellow metal to continue shining in 2023 as the prices of precious metals rise.
One of the reasons why gold shines well is due to the complicated and unchartered territory in relation to the geopolitical conflicts between Russia, Ukraine, the US, Taiwan, and China.
The second reason is the unpredictability of the monetary policy used by the central banks in the west. It is uncertain when they will start, stop, or loosen until that point. This raises a lot of uncertainty and volatility in the market and remains a significant question.
Most trade between Russia and China is conducted in each country's domestic currency, which is the third concurrent event to be considered. As a result, fewer dollars are being exchanged in the currency markets. It seems that the dollar index will start to fall in the future during the year 2023, which will lead to a significant increase in the price of gold. This may be the trend going forward if Russia is dealing with other countries, they will ask for the payment in Russian Ruble and vice versa.
Shiels also shared the 2023 precious metals forecast from MKS Pamp Group, which projects an average price for gold of $1,880 and silver of $22.50. The prediction states that in 2023, gold could reach a high of $2,100, and silver could reach a price of $28 an ounce. ABN AMRO predicts gold's price will be around $1,900 per ounce in 2023 and by Saxo Bank will reach $3K this year.
Ole Hansen, head of commodity strategy at Saxo, predicts 2023 is the year that the market finally realises that inflation is set to remain ablaze for the foreseeable future. According to Swiss Asia Capital's managing director and chief investment officer, Juerg Kiener, gold may rise to $4000 per ounce in 2023.
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