Swiss Asia Capital’s managing director and chief investment officer, Jörg Kenner, expected it to rise gold prices to $4,000 an ounce in 2023 as interest rate hikes and recession fears keep markets volatile.
He said the price of gold could reach between $2,500 and $4,000 in 2023, he told CNBC, and Al Arabiya.net reviewed it.
He added that there’s a good chance the gold market will see a big move, adding, “It’s not just going to be 10% or 20%,” but it’s a move that will “reach new highs.”
Kenner explained that many economies could face a “mild recession” in the first quarter of 2023, which could lead many central banks to slow the pace of interest rate hikes and make gold more attractive immediately, noting that gold is the only asset that every bank owns.central.
According to the World Gold Council, central banks bought 400 tons of gold in the third quarter, nearly double the previous record of 241 tons in the same period in 2018.
Kenner also expected investors to eye gold as inflation remains high in many parts of the world. “Gold is a good inflation hedge and is a great catch during stagflation and a solid addition to the portfolio,” she said.
Despite strong demand for gold, Kenny Polkari, chief market strategist at Slatestone Wealth, disagrees that prices could double in 2023.
Polkari argued that gold prices will see some decline and resistance at $1900 an ounce. He said prices would be determined by how inflation responds to higher interest rates globally.
Earlier this month, China’s central bank announced it had added $1.8 billion of gold to its reserves, bringing the cumulative value to about $112 billion, Reuters reported.
