Experts agree that gold will crash in 2023

Experts agree that gold will crash in 2023
Experts agree that gold will crash in 2023

Experts agree that gold will crash in 2023

Although gold posted significant gains in November, the precious metal still faces a difficult road into 2023 as US monetary policy is expected to remain very tight, according to a precious metals company.

Gold around 1500

In their price forecasts for 2023, analysts at the British research firm Metals Focus said they expect average gold prices to drop by 10% next year, hitting a fourth-quarter low at a 4-year low of $1,500 an ounce. . .

Analysts said that the Fed's monetary policy is this

“There is no question that the economy will weaken, but with a historically low starting point for unemployment in the United States and tight labor markets, we think policymakers will, in general, remain hawkish.” Analysts said in the report. This will inevitably put pressure on asset prices in general. Gold is likely to fall, and in combination with higher nominal yields, lower inflation should eventually lead to higher real inflation.”

Gold outperforms stocks and bonds

Although gold and silver prices are expected to struggle through 2023, Metals Focus said it still sees precious metals playing a vital role in investors' portfolios. Analysts expect gold to outperform the black-and-white markets.

Even at gold's lows this year, with prices dropping to a two-year low of $1,618, the precious metal has largely outperformed the S&P 500. Even now, with broad stock markets pushed close to 4,000 points, The precious metal is still falling. More than 17% this year.

Metals Focus also expects the character price to continue

“It is safe to say that interest rate expectations have already been factored into current gold prices, but the case for holding zero-yielding assets, such as gold, is not convincing in the event of a real price increase,” the analysts said.

Gold is under pressure

Even though gold is rallying amid a weaker US dollar, Esther Céniversaireniversaire expects

“Gold is enjoying renewed momentum on the back of a weaker US dollar. However, rising US real interest rates remain a major headwind to ailing gold,” said the analysts. bank.

They added, "Inflation remains well above the Fed's target range of 2%, and the US dollar could reverse given the central bank's hawkish comments." 2023

Rapid drop...below 1600

In his 2023 outlook, Bart Melek, head of strategic commodities at TD Securities, said he sees gold prices falling below $1,600 an ounce in the first quarter of next year. Domain added

Milik said the Fed's aggressive monetary policy measures, which were the dominant factor in gold until 2022, will continue to control prices next year. He added that the Fed is not willing to adjust its policy.

“With continued inflation, the Fed may have no choice but to stick to a hawkish policy for the next 12 months or so. We expect the federal funds rate to reach 5.50% by mid-2023 and there will be no easing until late 2023.” hero score

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