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.
According to expectations of strategists of the Internationale Nederlanden Groep, gold will grow in 2023.
In the opinion of analysts, the Fed's monetary policy will continue to have an impact on gold. A weaker U.S. dollar, due to a less hawkish policy, is likely to support gold prices.
James Knightley suggests that Fed rate hikes will stop after the February meeting.
Fears of recession will also have a positive effect on the precious metal, and the continuing weakening of the U.S. currency will stimulate its growth.
The increase in the volume of long positions of speculators in gold on the COMEX shows a strong bullish mood. Such data was provided by the CFTC.
ETF investors do not change the mood. They are not supporting the gold rally yet due to a 0.2% drop in total ETF metal stocks this year against a rising price.
ING predicts that the price of gold will rise through 2023, with an average price of $1,900 per ounce in the fourth quarter.