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.

Today, gold futures are trading at $1,647 per Troitsk ounce. On the one hand, this is quite an attractive price, as the metal cost over $2,000 at the beginning of the year. On the other hand, it's worth remembering that in 2020, the price was $1,440.

Therefore, it's safe to say there's still room to fall, and $1,600 isn't the bottom yet. Current gold price - https://time-forex.com/kotirovki

What will determine the price of gold in 2023?

Primarily, it depends on the exchange rate of the US dollar against other global currencies. Currently, there is a noticeable inverse correlation between the US dollar and gold:

The chart clearly shows that gold has been falling in price for six months, while the dollar has been rising. For this reason, it's much more profitable to invest in US government bonds than to lose money due to the falling price of gold.

The second reason why gold is likely to fall in price in 2023 is the global economic crisis. People and countries simply don't have the spare cash to save, so all their resources are being spent on essential needs.

In addition, the market is under pressure from an excess supply of metal, which even sanctions against Russia, which have limited gold supplies from that country to the global market, have failed to contain.

Based on the current situation, we can predict the price of gold in 2023 to be in the range of $1,500 to $1,700 per ounce, as there are no visible reasons for the precious metal to rise in the near future.