Gold Price Forecast: Very positive backdrop for XAU/USD in 2023 – ANZ

Gold price hit levels last seen in April 2022 above $1,900. Economists at ANZ bank believe that the yellow metal has a bright outlook in the year ahead.

Central bank purchases of Gold are likely to continue

“A deteriorating economic outlook will add to safe-haven demand for Fold. Geopolitical risks are also likely to remain elevated for the second year, encouraging investors to hedge.”

“We expect jewellery demand to grow 4% YoY, surpassing 2021he prospects for physical demand have also improved. As China’s economic activity normalises in the aftermath of its reopening, consumer demand for Fold is likely to rebound. India is relatively well positioned, underpinning jewellery demand. We levels.”

“Central bank purchases of Gold are likely to continue, albeit at a slower pace from record purchases this year. Elevated geopolitical risks, trade tensions and currency risks will continue to prompt them to diversify their foreign reserves into Gold.”