Gold is on the rise in 2023, with the precious metal surging 2.36% against the US dollar in the first week of the new year alone. % surged against the U.S. dollar.According to the head of metals strategy at MKS Pump Group, there is “a decent amount of bullish ‘pent-up’ demand for gold that has carried over from last year.”
Central bank demand and continued geopolitical tensions drive gold higher
According to market prices over the past seven days, claims on gold continue to rise. Gold has surged from $1823 to $1866 per troy ounce in that time frame.18} Goldis up 2.36% against the US dollar, while troyounces of pure silveris down roughly 0.58% since the beginning of the year.
Both gold and silver have risen significantly in the past two months, with gold up 14.55% and silver up 22.31% against the dollar. With precious metals on the rise, “gold bugs” believe the yellow metal will “shine in 2023.”
29} In a two-part seriesSeeking Alpha author “Gold Mining Bull” claims that gold will perform better in 2023. The author cites central bank demand and “continued geopolitical tensions” as reasons for optimism; Gold Mining Bull pays particular attention to central bank gold purchases this year.
“Central banks around the world, especially in China, Turkey, and India, are buying gold at a record pace,” the author explains.” This trend has continued for the past 13 consecutive years, but the pace has recently accelerated.” The analyst adds.
They have increased their gold reserves in recent years as a way to diversify their foreign currency holdings and reduce their dependence on the US dollar.
In addition, the author sees six more factors pushing the gold price higher, including recovering jewelry demand, the Fed’s eventual pivot, the escalating Ukraine-Russia war, a weaker US dollar, limited new mine supply, and a possible Chinese invasion of Taiwan.
Central bank gold purchases have been a particularly influential factor in terms of gold interest over the past year. According to analystscited by the Financial Times, Russia and China accumulated the most gold demand in 2022.
Mr. Nicky Shields, head of metals strategy and macro at MKS Pump Group, toldon Friday. In Friday’s Kitco News, she said that demand for gold has eased and could indicate a positive trend in the market. Shields discussed this week’s risingU.S. nonfarm payrolls. He discussed the U.S. nonfarm payrollsand stated that there is “simply nothing recessionary”about thisreport.
on gold.