Bomb 2023 Assumptions For The Gold Price: These Levels Are Coming!

Bomb 2023 Assumptions For The Gold Price: These Levels Are Coming!
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The gold market is poised to close the year in a relatively neutral zone as prices hold the $1,800 mark. Analysts predict prices will rise significantly throughout the year and into 2024. Therefore, they expect a different and exciting 2023 for the gold price.

“I am waiting for $2,100 in the next rally”

Avi Gilburt, founder of ElliottWaveTrader.net, says that gold is poised to rise after a two-year consolidation period. Gilburt predicts that gold prices will rise solidly above $2,000. In this context, Gilburt makes the following statement:

If you don’t have anything nice to say, then don’t say anything. This has been such for gold. I’m waiting for my time and waiting for the next rally to $2,100.

gold price

A long-term perspective for the gold price

Looking at the long-term technical picture of gold, Gilburt says it followed a five-wave rally to 2015 lows. He explains his views on this matter as follows:

We reached the crest of the third wave in August 2020. From then until it hit bottom in early November of this year, we basically had two years of consolidation in the fourth wave. We’re now gearing up to rocket higher in the fifth wave.

Classically, the fifth wave has been pretty strong, Gilburt says. He also adds that prices have the potential to be parabolic. “The next pullback will likely be a buying opportunity,” Gilburt says.

Bomb 2023 Assumptions For The Gold Price: These Levels Are Coming!

Two precious outliers for the gold price

The precious metal had a very disappointing year while struggling to attract the attention of investors. After that, the air rises significantly as we enter the new year. According to some analysts, investors were disappointed in gold until 2022 as it did not fulfill its promise of hedging from inflation.

In the year we are preparing to leave behind, US consumer prices have reached their highest level in more than 40 years. However, due to the inflation threat, the US Federal Reserve had to increase interest rates by 425 basis points. It was also the most aggressive political stance in 41 years. Rising US interest rates boosted real bond yields. Thus, it pushed the US dollar to its highest level in 20 years. Because of this, it was two precious opposing winds for the gold price.

Bomb 2023 Assumptions For The Gold Price: These Levels Are Coming!

Individual investors are waiting for the price of gold north of $ 2,000

However, markets are seeing the Federal Reserve’s tightening cycle come to an end. Therefore, these contrary winds are slowly starting to subside. Analysts predict the Fed Funds rate will peak at just over 5% in the first half of 2023. The gold market again attracted attention as the light appeared at the end of the tunnel. In this middle, gold saw an impressive rally in the last quarter of 2022. With this attack, the price of gold rose 11% from its two-year low to reach $1,800.

The rise of gold creates a new bull trend amid personal investors. Last week, Kitco conducted its annual outlook survey asking readers where they think gold prices will end in 2023. According to the results, individual investors expect gold prices to rise above $2,000, to see new record levels.

Last week 1,213 people voted in Kitco’s online appearance poll. The median price target amid affiliates was $2,279. On the downside, just 111, or roughly 9% of respondents, said that gold prices will fall below $1,800 next year. Individual investors are expecting a much higher rise in gold than many Wall Street analysts and financial institutions.

Bomb 2023 Assumptions For The Gold Price: These Levels Are Coming!

“There will be more than one pressure pushing the bottom up”

Bank of America (BofA) is one of the biggest believers in the rise of gold. In its 2023 outlook, the bank assumes the yellow metal will hit $2,000 next year. “Once the Fed stops raising interest rates, there will likely be a good market for the gold price,” says Michael Widmer, commodity strategist at BofA.

That said, multiple analysts are relatively neutral on the expensive metal. Accordingly, they expect an annual average price of $1,850. Analysts say the first half of 2023 will likely still be a strong environment for the precious metal as the Fed will continue to raise interest rates. Many banks think that gold will recover significantly in the second half of the year. Mark Francis, Senior Advisor to the Canadian Stock Exchange, comments:

In 2023, there will be multiple pressures pushing it upside down. Either lower interest rates and lower inflation, or continued inflation driven by grotesque US government deficits, with ongoing global geopolitical turmoil escalating strongly, will reduce the opportunity cost of holding gold. I assume that gold prices will rise to $2,224 by the end of the year.

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