Gold makes strong start to 2023

According to a weekly report by Ole Hansen, head of commodity strategy at Saxo Bank, gold initially had a strong start to 2023. However, last Thursday's U.S. labour market report caused a temporal collapse in gold prices.

Overall, he said, sentiment for the precious yellow metal remains positive. The head noted that 2023 should be favourable for investment metals. This period will be supported by risks of recession and a possible peak in interest rates, coupled with the prospect of a weakening U.S. dollar. In addition, there will be medium-term inflation, which will not fall to the expected 2.5%, but will settle at around 4%.

Prolonged solid demand from central banks should have a positive effect on gold prices. Hansen believes that the shift away from the dollar, coupled with heightened interest in the precious metal, should provide another good year for gold purchases by the official sector. In addition, a favourable investment environment for gold will lead to an inflow of at least 200 tons in the gold ETF funds in 2023, the expert added.