What to expect from the price of gold in 2023, how long will the precious metal fall in price?
In 2022, a paradoxical situation has developed in the precious metals market; while demand for physical gold is growing, the price on the exchange for futures contracts continues to fall.
Historically, it is believed that precious metals begin to rise in price when inflation increases, armed conflicts and economic instability increase.
But 2022 has refuted all the rules on which exchange trading has been based for years; the price of metal behaves in an unusual way.
If at the beginning of the military conflict in Ukraine gold reacted completely predictably, now its price has dropped below 2021 values.
Therefore, we can say that there is still room to fall and $1,600 is not yet the bottom limit. Current gold quote - https://time-forex.com/kotirovki
What will the price of gold depend on in 2023?
First of all, on the exchange rate of the American dollar in relation to other world currencies. There is currently a noticeable inverse correlation between the US dollar and gold in the market:
The figure clearly shows that gold has been falling in price for six months now, and the dollar has been rising. For this reason, it is much more profitable to invest in US government bonds than to lose money due to a fall in the price of gold.
The second reason why gold is likely to fall in price in 2023 is the global economic crisis. People and states simply do not have free money for savings, so all funds go to priority needs.
In addition, the market is pressured by an excessive supply of metal, which even sanctions against Russia, which limited the supply of gold from this country to the world market, could not contain.
Assessing the current situation, we can predict the price of gold for 2023 in the range from $1,500 to $1,700 per 1 Trinity ounce, since there are no visible reasons for the growth of the precious metal in the near future.