In 2023, The Price Of Gold Will Partly Depend On The Evolution Of Inflation (report)
One of the conclusions of the World Gold Council through its report published on December 2022 on the outlook for the market in the coming months informs that in 2023, one of the signs to be watched by the Global gold market players will be inflation again.
According to the report, the decline in inflation should weaken the US dollar and benefit the yellow metal. Experts say that the successive hikes in the US Federal Reserve’s key rates have indeed helped to strengthen the US dollar and made bond yields more attractive at the expense of gold, whose price has fallen.
World Gold Council analysts also note that a mild recession, as predicted by many economists for 2023, would benefit gold as it has historically been the case. The intervention of central banks to try to control inflation could finally bring the world economy close to stagflation and strengthen investors’ interest in the metal, in this period of uncertainty.
Headwinds, such as slight growth, on the other hand, could push the yellow metal lower than it is currently.
It should be noted that after peaking at over USD 2,000 per ounce in March shortly after the Russian invasion of Ukraine, the price of gold was trading at just over USD 1,800 per ounce for the last days of the year.
Experts agree that for producing countries, a high gold price means higher revenues from mining royalties and corporate taxes.
In Africa, the main producers include South Africa, Ghana, Mali, Mauritania, Ivory Coast, Sudan, Burkina Faso or Tanzania.
