According to analysts at Bank of America, investors' portfolios will hold gold securities for the next 3 years. Commodity strategist Michael Widmer believes that currently, in 2023 a favorable period for gold begins. Kitco News, referring to a U.S. bank report, informs that this positive macroeconomic perspective will last until at least 2026.
Widmer explained the higher interest in other asset classes than in the yellow precious metal by rising real interest rates and the strengthening of the U.S. dollar. The expert added that was the situation in the last quarters, but now the situation has changed.
The first factor is the frequent discussion of the benefits of diversifying into copper. Stock market research shows that some leading gold miners have already moved into nonferrous metals. The second confirmation is favorable conditions of macroeconomics for the growth of gold.
A decline in investor interest in gold ETFs has put pressure on the gold price in the past 2022. Now the bank expects a weakening of outflows from them.