Gold may hit historical high in 2023, Saxo Bank says
Head of Commodity Strategy in Danish Saxo Bank Ole Hansen recently said that if the gold exceeds $2075 per ounce, it may hit the historical high in 2023.
The analyst says that several factors will contribute to it.
The first factor is the central banks divesting their foreign reserves amid a challenging geopolitical environment. They will start to buy gold instead of them.
Another factor is the government's ability to spend budget funds on ambitious projects, for example, energy transition. Increased debts reduce the cost of paper money and raise the attractiveness of gold as a store of wealth.
And the third factor is the possible global recession of 2023. It can make the central banks open the liquidity taps and thus lower interest rates and opportunity costs for the yellow metal.
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Demand for gold surged to an 11-year high last year. This is due to large-scale purchases on the back of high activity by retail investors and a slowdown of ETF outflows.
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