Expect gold to shine next year says one precious metals researcher, who says that conditions are expected to be favourable to the yellow metal in 2023.
Pepperstone head of research Chris Weston says that 2023 will be a year that is favourable for gold prices, making now the ideal time to add the precious metal to your portfolio.
Speaking earlier this week, Weston explained why gold prices have been partially hemmed in this year saying, “Gold is a hedge against expected inflation rather than realized inflation. Gold’s held up pretty well relative to real rates. People are looking at the wrong type of inflation. It’s more about inflation expectations and breakeven rates. If you look at five-year breakeven rates, they reached a high of around 3.76% in March and then came back to 2.43%.
“Gold is a 2023 story. I do see signs that the dollar will be an under-performer starting in 2023. Next year, we’ll see a weaker dollar that may set the stage for real rates to have a bit of a turn. That’s where we’d be looking at gold quite favourably.”
With just weeks of 2022 left, now is the time to take action to position yourself optimally for the year ahead. Don’t delay and risk missing out.
