January 28, 2023

Raven Tribune

Complete News World

Gold at $4,000? Analysts share their 2023 price forecasts

Gold prices could rise to $4,000 an ounce in 2023 as rising interest rates and recession fears keep markets volatile, said Jörg Kenner, managing director and chief investment officer at Swiss Asia Capital.

The price of the precious metal could reach between $2,500 and $4,000 sometime next year, Kenner told CNBC. “Street Signs of Asia” Wednesday.

There’s a good chance the gold market will see a big move, he said, adding that “it won’t just be 10% or 20%,” but the move will “really make new highs.”

Keener explained that many economies could experience a “small recession” in the first quarter, which could cause many central banks to slow down the pace of interest rate hikes and immediately make gold more attractive. He said that gold is the only asset that every central bank owns.

According to the World Gold Council, central banks bought 400 tons of gold in the third quarternearly double the previous record of 241 tons during the same period in 2018.

“Ago [the] 2000s, average return [on] Gold in any currency is between 8% and 10% per annum. You didn’t achieve that in the bond market. You didn’t achieve that in the stock market.”

Kenner also said that investors will be looking to gold as inflation remains high in many parts of the world. “Gold is a very good inflation hedge, a great catch during stagflation and a great addition to a portfolio.”

We recommend that investors have some gold in their portfolios, says the Indian brokerage firm

Despite strong demand for gold, Kenny Polkari, chief market strategist at Slatestone Wealth, disagreed that prices could double next year.

See also  Amtrak unveils new Airo trains to replace older trains

“I don’t have a price target of $4,000, although I’d like to see it go there,” he said on CNBC’s “Street Signs Asia” Thursday.

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.

“I love gold,” he said. “I’ve always loved gold.” “Gold should be part of your portfolio. I think it will do better, but I don’t have a $4,000 price target.”

Gold rose on Tuesday as the US dollar weakened afterwards The Bank of Japan has adjusted its yield curve control policy. cause advertising Gold prices rose 1% above the key level of $1,800before falling on Wednesday as the dollar regained strength.

China is a big buyer

Asked if supply is low because demand is high, “There is always supply, but maybe not at the price you want,” said Kenner of Swiss Asia Capital.

Stock picks and investment trends from CNBC Pro:

Tips for investors

Nikhil Kamath, co-founder of Zerodha, India’s largest brokerage firm, said investors should allocate 10% to 20% of their portfolio to gold, adding that it is a “relevant strategy” by 2023.

“Gold was also inversely proportional to inflation, and it was a good hedge against inflation,” Kamath told CNBC on Wednesday.

He added, “If you look at the amount of gold you needed to buy an average home in the 1970s, you probably demand the same amount or less gold today than you did in the 70s, 80s or 90s.”