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.
The IMF increased the forecast for the global economy for the first time in a year due to the constant expenditures of the U.S. and the removal of anti-COVID restrictions in China.
GDP will likely increase by 2.9% in 2023. On Tuesday, in Singapore, the IMF reported in a quarterly update to its World Economic Outlook that this 0.2 percentage point growth was more than expected in October.
And although these figures might be considered as a slowdown, compared to the 3.4% growth in 2022, the IMF expects that it will be minimal and then will accelerate to 3.1% in 2024.
Inflation might be more stable. Financial markets are at risk of facing volatility, and international tension might cause the fragmentation of the global system, which would make cooperation between countries problematic. The growth of the world economy will be positive for commodities.