ANZ Banking Group: gold backdrop is positive in 2023

Economists at the ANZ bank see good prospects for the yellow metal market in the coming year.

Experts believe that the deteriorating economic outlook will strengthen demand for gold as a safe-haven asset. Geopolitical risks remain elevated, so they may encourage investors to hedge.

Demand for jewelry may grow 4% year-over-year, surpassing 2021 figures. The outlook for physical demand is also getting better. As Chinese economic activity normalizes after the borders’ opening, consumer demand for gold is likely to rebound.

Central bank purchases of gold are not likely to end yet. However, gold buying must slow down this year. Increased geopolitical risks, trade tensions, and currency risks will continue to encourage central banks to diversify their currency reserves in favor of gold.