publication date :
Monday
06:03 2023-1-9
A report released by “Gold Billion” predicts that gold’s performance in 2023 will be much better than in 2022 due to increased demand from central banks and ongoing geopolitical tensions. The report confirmed that there are 4 factors that make 2023 the year of gold.
The report identified several reasons for this, including that central banks around the world are buying gold at a record pace, and this trend has continued for the past 13 consecutive years, but its pace has finally picked up after the Banks have increased gold reserves as a way to diversify foreign currency holdings and reduce dependence on the dollar.
According to the World Gold Council, central bank demand for gold so far is 673 tonnes, surpassing all yearly totals since 1967. It added that one reason is the limited supply of gold from new mines, which is underpinning prices. high, since gold mining accounts for 75% of the annual supply, the availability of gold depends largely on mining production.
He pointed to another factor, i.e. the Federal Reserve raising interest rates at the fastest pace in history during 2022, to post interest at 4.5%, as this hike is expected to continue through the end of 2023, because interest rates are one of the main factors that can influence the demand for gold. Because it can influence the attractiveness of gold as a store of value or as a hedge against inflation, when interest rates are low, it is likely that investors buy gold as a safe asset, which could drive up its price.
