Analysts Discuss Gold 2023 Outlook

Juerg Kiener, Swiss Asia Capital’s managing director, expects that the price of gold may surge to $4,000 an ounce next year as fears of recession and hikes in interest rates fuel market volatility. In a recent interview with CNBC, the chief investment officer stated that the precious metal’s price could range between $2,500-$4,000 in 2023.

Kiener explained that in the first quarter of next year, many economies could experience a recession, which may prompt central banks to slow their rate hike pace and, in turn, make gold even more attractive. Kiener then noted that gold was owned by every central bank.

The World Gold Council estimates that during this year’s third quarter, central banks purchased 400 tons of gold. This figure represents a significant increase from the previous record of 241 tons, which was set in the same period four years ago. Kiener added that investors would also flock to gold as inflation remained high globally. He explained that this was because gold was a good hedge against inflation, in addition to being a great addition to any portfolio.

Not everyone agrees with his sentiment, however. Slatestone Wealth’s Kenny Polcari disagrees that the price of gold will increase significantly. Polcari, the firm’s senior market strategist, expects that despite strong demand for the precious metal, an increase in its price will not hit the $4,000 target. He argues that the price of gold would see some resistance and pullback at $1,900 per ounce, noting that the price would primarily be determined by how inflation responded to the hikes in interest rates globally.

Last week, gold rallied as the dollar dropped in value after the central bank of Japan regulated its yield curve control policy. Japan’s announcement caused the price of the precious metal to increase slightly above the $1,800 level before declining later in the week as the U.S. dollar recovered.

When asked about whether high demand had caused a decrease in gold supply, Kiener stated that there was always supply but not at the expected price. He added that the high prices were no match for buyers in China who were paying top dollar for gold. Kiener then observed that Asia had always been a big buyer of gold.

This sentiment comes a few weeks after the central bank of China announced that it had added roughly $1.8 billion worth of gold to its reserves. This brings the total value of the country’s reserves to about $112 billion.

As more central banks shore up their gold reserves, the uptick in demand could translate into better gold prices for extractors such as Eloro Resources Ltd. (TSX.V: ELO) (OTCQX: ELRRF).

NOTE TO INVESTORS: The latest news and updates relating to Eloro Resources Ltd. (TSX.V: ELO) (OTCQX: ELRRF) are available in the company’s newsroom at http://ibn.fm/ELRRF

About MiningNewsWire 

MiningNewsWire (MNW) is a specialized communications platform focused on developments and opportunities in the global resources sector. The company provides (1) access to a network of wire services via NetworkWire to reach all target markets, industries and demographics in the most effective manner possible, (2) article and editorial syndication to 5,000+ news outlets (3), enhanced press release services to ensure maximum impact, (4) social media distribution via the Investor Brand Network (IBN) to millions of social media followers, and (5) a full array of corporate communications solutions. As a multifaceted organization with an extensive team of contributing journalists and writers, MNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. By cutting through the overload of information in today’s market, MNW brings its clients unparalleled visibility, recognition and brand awareness. MNW is where news, content and information converge.

To receive SMS text alerts from MiningNewsWire, text “BigHole” to 844-397-5787 (U.S. Mobile Phones Only)

For more information, please visit https://www.miningnewswire.com

Please see full terms of use and disclaimers on the MiningNewsWire website applicable to all content provided by MNW, wherever published or re-published: https://www.miningnewswire.com/Disclaimer

MiningNewsWire
Los Angeles, California
www.miningnewswire.com
310.299.1717 Office
Editor@MiningNewsWire.com

MiningNewsWire is part of the InvestorBrandNetwork.

Archives

Select A Month

Contact us: (310) 299-1717