Jörg Kenner, Swiss Asia Capital’s managing director and chief investment officer, has predicted that the price of gold will climb to a remarkable $4,000 an ounce in 2023 due to escalating interest rates and economic uncertainty.
According to an interview with CNBC, he forecasted that gold prices could soar as high as $4,000 by 2023 – a potential increase of up to 60% from current levels.
He added that there is a good chance that the gold market will witness a big move, adding, “It will not be 10% or 20% only,” but it is a move that “will reach new highs.”
Kenner proclaimed that several countries may confront a “mild recession” in the beginning of 2023, which could lead to many core banks lessening their velocity of increasing interest rates and making gold instantly attractive. Interestingly enough, golden is the only asset held by all central banks worldwide.
The data from the World Gold Council has revealed that central banks surged their gold acquisition in Q3 2020, with a staggering 400 tons purchased – almost double the amount of 241 tons during the same period two years prior.
Kenner suggested that investors look to gold as inflation continues to be a concern in numerous countries. He articulated, “Gold is an optimal way of safeguarding yourself against inflation and it’s the perfect complement for any portfolio when there’s stagflation present.”
Despite the high demand for gold, Kenny Polkari, Chief Market Strategist at Slatestone Wealth, contested that prices may not double by 2023.
Polkari predicted that gold prices will experience a drop and struggle to move past $1900 an ounce. He stated that the direction of these values would be dictated by how inflation responds to rising interest rates globally.
In a report from Reuters, the People’s Bank of China declared that it had augmented its gold reserves by an immense $1.8 billion this month alone – resulting in a cumulative value reaching approximately $112 billion!
