testified gold prices A notable increase since the beginning of 2023 locally and globally, given the current economic and geopolitical conditions, where gold is considered a safe haven for investors and a good hedging instrument. The gold market has been impacted also from the issuance of a certificate with a yield of 25% and we have seen the price of gold fall from £1820 to £1740.
And Gold Bullion said that central banks bought gold in record quantities in the third quarter of 2022 and that gold’s performance in 2022 was as follows globally, making losses estimated at 0.3%, despite the losses, but that gold globally has been able in the past three months of trading to swallow 5 months of losses. Fully over last year, and locally, it has made gains estimated at 108% over the course of 2022
Gold Billion has indicated that the US Federal Reserve should continue its strict policy of raising interest, which is the only obstacle for gold to make gains and benefit from the current conditions, but how long will it continue to raise interest! And when it reaches its inflation target, gold’s performance will somewhat depend on the US Federal Reserve’s move in the coming period. We would have seen some weakness in gold performance and could have found lower prices had there been no geopolitical developments.
At the local level, however, after profit taking, it fell gold prices In the last months of 2022 it reached the level of 1550 pounds, to drop by about 300-350 from the peak reached, but soon recovered close to its maximum price influenced by the global price of the ounce and by the increase in the official price rate exchange rate in banks to get closer to the exchange rate in the parallel market.
And the Gold Pleot report continued that offering certificates with a 25% yield may affect gold prices, as many may resort to selling the yellow metal for a known yield without its risks through certificates. , and we always recommend diversification between gold and certificates, explaining that those who follow the gold quotations on a daily basis are those who trade to obtain a price difference, taking advantage of price movements, but those who save or hedge against the depreciation of the pound , or even hedges from current conditions so you don’t need to monitor the daily movements of gold.
