Saxo Bank’s projections indicate that the Federal Reserve will fail in its attempts to bring inflation back under control, and its efforts will lead to a recession that will favour the gold bulls. The Danish bank joined a growing list of notable institutions that have confirmed a bullish stance for the New Year.
The bank’s head of commodity strategy, Ole Hansen said that a struggling economy spells good news for gold. “The risk of a recession and the FOMC hiking into economic weakness – potentially without succeeding in getting inflation under control – continues to strengthen the upside risk for investment metals in 2023,” he confirmed.