Prices of gold soared to a six-month high in the early hours of Tuesday, Jan. 3, according to trading data.
CNBC reported that the precious metal's cost peaked just below $1,850 per troy ounce before easing off to trade around $1,838. U.S. gold futures were up one percent at $1,844.10. Analysts believe the rally will continue throughout the year.
The news portal also cited how there has been a general incline trend in the prices of gold since November as market turbulence, rising recession expectations and more gold purchases from central banks have underpinned demand.
"Fear and doubt across wider financial markets mean gold and silver have begun 2023 with a typical New Year surge, attracting speculative inflows as traders see weak growth, high inflation, and a worsening geopolitical outlook ahead," Adrian Ash, director of research at BullionVault wrote in a commentary.
Ole Hansen, head of the commodity strategy at Saxo Bank, said analysts are generally looking for a price friendly 2023.
He noted that the de-dollarization seen by several central banks last year looks set to continue, thereby providing a soft floor under the market. "Above $1,842, the 50 percent [mark] of the 2022 correction, gold will be looking for resistance at $1,850 and $1,878 next," the commodity strategy expert said.
Full dovish pivot by central banks will further boost gold prices
This year's gold outlook for global markets hinges on the trajectory of monetary policy as central banks "ease off" the aggressive interest rate hikes of the past year amid slowing economic growth and possible recession.
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According to strategists, a full dovish pivot by central banks this year will further boost gold prices.
Eric Strand, manager of the AuAg ESG Gold Mining ETF, predicted that 2023 would yield a new all-time high for gold and the start of a "new secular bull market," with the price exceeding $2,100 per ounce.
"Central banks as a group have continued, since the great financial crisis, to add more and more gold to their reserves, with a new record set for [the third quarter of] 2022," he explained. "We, therefore, believe gold will end 2023 at least 20 percent higher, and we also see miners outperforming gold with a factor of two." (Related: Central banks all over the world are buying gold at a furious pace.)
Even Robert Kiyosaki, the renowned author of the best-selling book "Rich Dad Poor Dad," has predicted via a tweet that the price of gold will soar to $3,800 this year while silver will hit $75.
He explained: "I became a gold bug in 1972. I was a Marine pilot in Vietnam flying behind enemy lines hoping to buy gold at a discount because the mine was in enemy hands. Found out the price of gold is the same all over the world."
Last week, he warned investors that it may be the last chance for them to buy gold and silver at low prices. Kiyosaki said many times in the past that he does not trust President Joe Biden's administration, the Federal Reserve, the U.S. Treasury and Wall Street. He predicted the stock, bond and real estate markets to crash as the Federal Reserve is expected to continue to hike interest rates to fight inflation.
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