Gold prices were under pressure in 2022 due to aggressive federal reserve. However, Ing expects the Fed to start interest rate cuts next year and to relax this pressure. In the meantime, according to a mining manager, gold will always play an important role in a portfolio as a safe port asset.
“Gold prices will recover next year when the Fed begins to relax”
The strengthening of the US dollar and the tightening of the Central Bank created heavy pressure on gold in 2022. Next year, the economists in ING are waiting for the Fed to recover with the relaxation of the FED. In this context, economists make the following assessment:
We expect the Fed to tend to decline during the ongoing tightening cycle. In the short term, we foresee more gold prices in the midst of monetary tightening. However, any tips on a relaxation in the Fed’s aggressive walking cycle will begin to support prices. In order to happen, we will probably have to see signs that there is a significant decrease in inflation.
According to economists, inflation is possible to fall very harshly in 2023. Economists say that this will open the door to start interest rate cuts in the second half of the FED in the second half of 2023. From this point of view, they make this estimate:
Under the assumption that the FED was loosened in the second half of 2023, we expect the gold to move higher for 2023. Thus, we estimate that gold prices will reach $ 1,850 in the 4th quarter.
“Fear of recession and volatility in crypto markets”
According to a mining manager, gold will always play an important role in a portfolio as a safe port asset. However, in 2023, investors need to pay attention to copper because it will probably have more potential. Warwick Smith, CEO of America Pacific Mining, says that although it was much more wavy than under copper prices last year, its main appearance has made it a slightly more attractive investment than the yellow metal.
At the beginning of 2022, copper prices reached the highest level of all time for a short time. Copper to this movement, over $ 5 per pound. However, the increasing fears of stagnation due to Federal Reserve’s aggressive monetary policy stance imposed significant pressure on industrial metal. Copper prices are trying to close the year with a decrease of 12 %. The last pound is traded for $ 3,891 per pound.
Compared, gold prices are preparing to finish the year in the neutral region. So it is relatively better than copper. Gold is traded for $ 1,855. Smith, who looks at the gold market, says that the ongoing volatility in crypto markets as well as recession fears should continue to support valuable metal.
