Gold price in 2023 to reach 2,000 USD/ounce?

The gold market experienced a challenging year and ended on an upward trend, likely closing at $1,800/ounce.

Currently, gold prices are maintained at $1,800/ounce. Gold prices are forecast to fall less than 2% by the end of the year. Major banks and commodity analysts do not expect a strong price increase by the end of this year.

Over the past year, gold has become one of the most profitable assets after the USD. Analysts say that gold investors need to be psychologically stable in 2023. In the new year, gold prices will face difficulties at the beginning of the year and shine brighter at the end of the year.

Gold price forecast 2023. Photo: Kitco

Pressure on gold prices remains the US Federal Reserve's monetary policy stance. In its most recent monetary policy meeting, the Fed forecast interest rates to peak above 5% in 2023.

Economists say central banks are nearing the end of their tightening cycle, which could be good for gold.

Bank of America expects the Fed to end its tightening cycle in March and cut interest rates for the first time by the end of 2023. Michael Widmer, a commodity strategist at Bank of America, said gold prices could reach $2,000 an ounce.

Commodity analysts at Commerzbank said that with the Fed cutting interest rates later this year, gold prices could struggle in the short term as investors adjust to a late-term rate hike above 5%.

“When the Fed cuts interest rates, gold prices will rise again,” said analysts at German bank Commerzbank, which forecasts gold prices rising to $1,850 an ounce by the end of 2023.

In the first session of the week, the world's largest gold exchange-traded fund (ETF), SPDR Gold Trust, net bought 1.7 tons of gold, raising its holdings to more than 912.1 tons.