Experts Predict Gold Price As 2023 Is Approaching FastJanuary 3, 2023
As the New Year is around the corner, the market is experiencing rapid changes, whether it’s the forex market, stock market, or cryptocurrency market, rapid changes are happening.
However, this time experts have to look deeper into the technical indicators gold is showing moving forward.
The current market indicators show that there will be no fluctuation in the gold price for the remaining days of 2022. The gold is on its way to finishing 2022 at $1800.
But for 2023, the price of gold is expected to rise. However, the fed’s monetary policy and China’s economic performance will play a decisive role in setting up gold prices.
Conversely, the current market position and technical indicators have shown that XAU/USD can be surged due to the strong bullish presence.
The Price Performance of Gold Throughout 2022
However, a deeper look at the gold prices shows that gold prices fluctuated in 2022. The price of gold for the final quarter of the financial year 2021 was far from convincing.
Gold struggled to retain the resistance level at around $1800 during this period.
But the rapid changed occurred back by the end of February 2022, when the market had seen a rapid surge in the price of gold.
The price of gold then soon reached its two-year high at $2070. But the second and third quarter of the financial year 2022 has seen a dramatic decline in gold prices.
For the constant seven months, the price of gold constantly declined and finally touched the $1600 mark, the two-year low.
However, in November 2022, a new surge in the gold price occurred. By mid-November 2022, the price of gold had risen by 8%.
The constant rise in the price continued to mount, and by the mid of December 2022, the price of gold reached the $1800 mark.
Forex market experts believe that the price of gold will remain intact at $1800 by the end of 2022.
What will be Gold Price in 2023?
The data collected from various charts show that the USD has been stable in recent weeks. That is a good sign for the market.
The stable market outlook is very much on the cards. As far as the price of gold is concerned, it depends on two or three major factors.
First, the fed’s new monetary policy; second, the macroeconomic factors; and lastly, how good China’s economic performance will be.
However, the broader price picture of gold will also consider the current market positioning and supply intensity.
The Expected Outcomes of Fed Policy
Recently the FedWatch tool formulated by the CME group indicated that the Feds are considering 25 bps hikes in the interest rate for February and March. If this happens, then the policy interest rate of the U.S. central bank will fall between 4.75 to 5%.
Moreover, Feds officials have also said that cutting the policy rate is not on the cards. Furthermore, inflation might also go out of control in some sectors.
But experts believe that in case of moderate inflation and lower CPI, the Feds might think of cutting the policy rate by the end of 2023. If this happens, Gol’s price can go beyond the $2,200 mark.
Conversely, high inflation and CPI can lead to a higher policy rate.
China’s Economic Performance
Recently OECD announced that China’s economic growth for the financial year 2023 is expected to be around 4.6%. But China can beat this number as it did back in 2022.
But the current rise in Covid-19 cases is the biggest hurdle that can keep China from achieving 4.6%.
The recent increase in Covid-19 cases has also disturbed China’s labor and manufacturing sectors.
If China manages this Covid-19 crisis and achieves a 4.6% growth rate, this will give the gold price much-needed price stability. Only time can tell how high the gold price will rise in 2023.