Kitco Reports on International Gold Market News
Kitco News, March 8, 2023
Gold Prices Surge on Geopolitical Uncertainties
Gold prices have surged in recent weeks amid heightened geopolitical tensions. The ongoing conflict in Ukraine and escalating rhetoric from other global powers have spooked investors, driving them toward safe-haven assets like gold.
Analysts at Kitco News note that gold’s upward momentum has been supported by a weakening US dollar. The greenback’s decline has made dollar-denominated gold more attractive to foreign buyers. Additionally, concerns over inflation and the potential for recession have further boosted gold’s appeal.
Central Banks Continue to Accumulate Gold
Official gold reserves have increased significantly in recent years, as central banks seek to diversify their portfolios and hedge against economic risks. According to the World Gold Council, central bank gold purchases reached a record high in the fourth quarter of 2022.
China and Russia have been particularly active in accumulating gold. In January 2023, the People’s Bank of China purchased 15 tons of gold, bringing its total reserves to nearly 2,000 tons. Russia has also been a major gold buyer, adding around 100 tons to its reserves in 2022.
Analysts Forecast Continued Strength in Gold
Analysts at Kitco News anticipate that gold prices will continue to benefit from the current geopolitical and economic uncertainties. They believe that gold’s safe-haven status, coupled with its inflation-hedging properties, will make it a sought-after asset in the coming months.
Some analysts predict that gold could reach $2,100 per ounce in 2023, a significant increase from its current price of around $1,930. However, they caution that gold’s performance will ultimately depend on the evolution of global events and the actions of central banks.
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