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Gold Prices Predicted to Set a New Record in 2023

Gold bar.  Image:sekilas desa

Global Payment - Gold prices are predicted to set new records in 2023 after the slower increase in interest rates from the United States (US) central bank.

The price of gold is even expected to be ready to fly towards a new high, aka an all-time high (ATH) this year amid increasing demand.

The price of gold on the spot market shot up 5.72% throughout January to US$ 1,928.36 per troy ounce.

The action of several central banks buying up gold is one of the pillars of the increase in gold prices.

The easing of rising interest rates correlates with the country's ability to buy up gold.

Throughout 2022, global gold purchases reached 1,135 tons, the highest record in the last 55 years.

The People's Bank of China (PBoC) became the biggest buyer, accounting for 20% of total gold purchases last year. Central banks in Turkey, India, and Uzbekistan also bought up gold.

China's central bank has accumulated gold in the last 20 years but has never reported it transparently. China is estimated to have at least 6,000 tons-10,000 tons of gold compared to the 2,000 tons it admits.

With large foreign exchange reserves, China will still be able to buy gold in the next few years.

The conflict between Russia and Ukraine also had an impact on increasing gold purchases. This is because many of Russia's central bank assets were frozen. This situation prompted the central banks of China, Turkey, and Russia to diversify into gold assets.

New record Gold Price

The price of gold will also be supported by the easing pressure to increase interest rates. According to Alwi, the Fed's interest rate is expected to peak in June 2023 in the range of 4.89%. At the end of the year, the Fed is expected to cut interest rates to 4.39%.

There are no more interest rate hikes, so there's nothing to hold back the price of gold like last year

Analysts agree, easing interest rates will be the momentum for gold to set a new record. It is predicted that the price of gold on the spot market will penetrate US$ 2,100 per ounce in the third quarter of 2023.

Suggest investing in gold bars for the long term of at least five years to 10 years. If you want to be more attractive, investors can trade gold on the spot market which is believed to hit record highs this year.

Almost all financial Analysts and economists see investing in gold and cryptocurrencies like bitcoin (BTC) will be winning investments in 2023.