The price of gold to 2200 dollars, and silver to 30 dollars in 2023 – Degussa

Welcome to Kitco News’ Outlook 2023 series. Uncertainty still grips the financial markets as central bank monetary policies push the global economy into recession to calm inflation. Stay tuned to Kitco News to learn from the experts on how to navigate the turbulent financial markets in 2023.

(Kitco News) – Continued weakness in the US dollar should provide further support gold Prices in 2023 as the precious metal start the year are up 5%, according to two market analysts.

In their 2023 outlook published last week, Joe Foster, portfolio manager and strategist, and Imaro Casanova, deputy portfolio manager at VanEck, said they see several reasons why the dollar has peaked as prices have fallen nearly 10.5% since their peak in 2023. 20 years. in September.

The upward look comes gold Prices maintain strong gains above $1,900 an ounce, with the US dollar index trading around 102.17 points.

“We expect to see the US dollar weaken further in the event of a recession,” the strategists said in the report.

The steep inverted yield curve and the effects of the Federal Reserve’s aggressive monetary policy are two important reasons why analysts expect to see weak economic activity in the new year.

“Just nine months of tightening financial conditions has led to a housing market crash, a cryptocurrency crash, a derivatives disaster for UK pension funds, and a major cryptocurrency exchange crash. What tail risks will the next nine months bring when a slowing economy is likely to be added to the mix? the analysts said.

VanEck also sees increasing geopolitical uncertainty weighing on the US dollar as it continues to tarnish its role as the world’s reserve currency.

“There has been a growing reluctance to rely on the US dollar for foreign exchange reserves and trade since Western sanctions have frozen more than half of Russia’s $500 billion in foreign exchange reserves,” Foster and Casanova. “Many countries see no guarantees that the United States will not use the American dollar to respond to some future wrongdoing that is less egregious than bombing a neighbor. As this new world order develops, there may be less demand for US Treasury bonds that empower the United States. To maintain her deficit-fuelled lifestyle.”

Besides a weaker US dollar, VanEck expects the risk of inflation to persist gold Attractive hedge to preserve wealth. Analysts said it is unlikely that the Fed has managed to keep inflation under control. They pointed out that the burgeoning government debt, which has reached $31.3 trillion of the national debt, equivalent to 124% of GDP, has become a significant expense.

Foster and Casanova added that they expect that strong demand for commodities, even in the face of recession, will support higher inflation.

“Energy markets will certainly see more volatility, while the rush into green technology will keep upward price pressure on many commodities. Once the Fed stops tightening, we will be watching the next wave of inflation. The Fed may find a second wave more difficult or even worse.” Impossible to deal with.”

While gold It has a lot of potential in 2023 VanEck said the key to higher prices remains in renewed investor demand.

“Global bullion ETFs experienced significant outflows from April to November. The outflows have now stalled, and while a stronger catalyst is likely needed to stimulate inflows, selling pressures have at least eased,” the analysts said. “Maybe 2023 brings a renewed focus on yellow metal.”

Not giving an opinion: The opinions expressed in this article are those of the author and may not reflect the opinions of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; However, Kitco Metals Inc. cannot. Nor does the author guarantee this accuracy. This article is for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. does not accept The author of this article will not be held liable for losses and/or damages arising from the use of this publication.

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