Gold Soars in 2023: Central Bank Demand, Geopolitical Tensions Drive Price Hikes

• Gold prices have jumped 2.36% against the dollar in the first week of the new year.
• Central bank demand and ongoing geopolitical tensions are driving gold’s ascent in 2023.
• Experts believe the yellow metal is set to shine this year and are watching central bank gold purchases with particular interest.

Gold prices have surged in the first week of the new year, with the precious metal jumping 2.36% against the US dollar. This is a continuation of the upward trend seen since November 3, when gold rose 14.55% and silver increased 22.31% against the greenback. This surge in demand has prompted experts to predict record highs for gold in 2023.

According to the head of metals strategy at MKS Pamp Group, there is a “decent amount of bullish ‚pent-up‘ demand that has been carried over from last year” for gold. This demand is being driven by several factors, including central bank purchases and ongoing geopolitical tensions. Central banks around the world, particularly in China, Turkey, and India, have been buying gold at a record pace. This trend has been going on for the past 13 consecutive years, but recently the pace has accelerated.

This central bank demand, combined with the geopolitical unrest, have caused a “Gold Mining Bull” to believe that the yellow metal will perform better in 2023. The author of the two-part series argues that gold is “set to shine” this year and is paying particularly close attention to central bank gold purchases. They are increasing their gold reserves in order to diversify their portfolios and hedge against inflation.

With gold prices continuing to rise, investors are eagerly awaiting to see how the precious metal will perform in the coming months. Experts are hopeful that the bull market will continue, and the precious metal will reach record highs in 2023.