Headwinds of investment metals are becoming tailwinds

Gold is again in demand among traders and investors who have found new perspectives as rate hikes are gradually suspending, while bond yields are reducing and the dollar is weakening.

The risk of an economic slowdown is heightened by the flow of weaker economic data, excluding employment reports. This may lead to lower inflation and FOMC policy reversal sooner than expected.

According to the strategist and director of the exchange-trading products department Saxo Bank Ole Hansen, 2023 is going to be advantageous for investment metal prices, which are supported by the economic downturn and stock market valuation risks. Moreover, this year the central bank’s interest rate hike cycle may come to an end. Ole Hansen predicts a weakening of the dollar and continued high demand from central banks.