Experts predict a record high in precious metals in 2023

Over the past 65 days, gold has climbed 14.55%, while silver has soared 22.31% against the greenback since November 3, 2022. According to the head of metals strategy at MKS Pamp Group, there is a “decent amount of ‘pent-up’ bullish demand that has been carried over from last year” for gold.

Central bank demand and current geopolitical tensions continue to fuel gold’s rise.

The emphasis on gold has continued to rise according to market prices over the past seven days. Gold has risen from $1,823 per troy ounce to $1,866 during this period. While gold is up 2.36% against the dollar, fine silver is down about 0.58% year-to-date.

Over the past two months, gold and silver have risen significantly, with gold jumping 14.55% and silver up 22.31% against the greenback. With precious metals on the rise, the “gold bugs” believe that the yellow metal is “ready to shine in 2023“.

In a two-part series, “Gold Mining Bull“, a writer for Seeking Alpha, argues that gold will perform better in 2023. The author cites central bank demand and “current geopolitical tensions” as reasons for optimism. Gold Mining Bull is paying particular attention to central bank gold purchases this year.

“Central banks around the world, including China, Turkey and India, have been buying gold at a record pace“, the author explains. “This trend has continued for 13 consecutive years, but recently the pace has accelerated.“The analyst adds:

In recent years, they have increased their gold reserves to diversify their foreign currency holdings and reduce their dependence on the U.S. dollar.

In addition, the author believes there are six other elements that could drive up the price of gold, including a rebound in jewelry demand, a potential Federal Reserve pivot, an escalation of the Ukraine-Russia war, a weaker U.S. dollar, a limited supply of new mines and the possibility of China invading Taiwan.

Central bank gold purchases have been a particularly influential factor in terms of interest in gold over the past year. According to analysts quoted by the Financial Times, Russia and China have accumulated the most gold in 2022 in terms of demand.

The head of metals strategy at MKS Pamp Group comments on the positive trend in the gold market.

Nicky Shiels head of metals strategy and macroeconomics for MKS Pamp Group, told Kitco News on Friday that there has been a demand pent-up for gold, which could indicate a positive market trend. Nicky Shiels talked about this week’s rise U.S. Nonfarm Payrolls and said that there was “simply nothing recessionary“in the numbers of the U.S. economy. report.

As for gold, it all depends on whether the precious metal can maintain its weekly appreciation. “Depending on whether gold can maintain its weekly gains (which seems increasingly likely), this solidifies the offensive way gold has been trading since it established a slight uptrend since early November – always looking for reasons to rally“, she said. Nicky Shiels continued:

“There is a decent amount of ‘pent-up’ bullish demand that has been carried over from last year that can ignite on the right data point (CPI &PCE) will be much more revealing.

On January 5, 2023, Nicky Shiels also shared his precious metals forecast which shows an average price of $1,880 for gold and $22.50 for silver. According to the forecast, gold could peak at $2,100 and silver could reach $28 per ounce by 2023. ABN AMRO expects gold to be around $1,900 per ounce in 2023, and Saxo Bank has estimated that gold prices should be around $1,900 per ounce and could even reach $3,000 per ounce this year.

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“2023 is the year the market finally discovers that inflation is going to stay hot for the foreseeable future” said Ole Hansen, head of commodity strategy at Saxo. Juerg Kiener, managing director and chief investment officer at Swiss Asia Capital, thinks gold could even hit $4,000 an ounce in 2023.