He oro it’s a asset highly chosen by investors for diversify their investments, since this has shown, over time, to preserve and increase its value, so if you are thinking of invest in this asset, it is important that you know the projection of gold in this 2023.
How much did gold go up or down in 2022?
He oro fell by approximately 0.5% in 2022, that is, it practically closed at the same price at which it began that year. However, this is because, during part of 2022, the oro it had some falls that were reversed in the last stretch of the year.
That is to say, since having touched a minimum in November of last year, the situation was reversed scoring important rises. In this line, Maximilian Donzellihead of research invest onlineexplain to iProfessional that this change in trend generated a rise of 22% in the last 6 months against 11.4% of the S&P 500.
What about gold today?
According to Donzelli, there are several analysts who project ambitious trajectories for the metal in 2023. “Of course, this is the product of different estimates both in terms of the inflation as at the level of economic activity and, of course, monetary policy of the Federal Reserve (Fed)”.
For this reason, the specialist says that it is important to understand what conditions must be met for the present asset to represent an interesting alternative to incorporate into a briefcase.
As for the future projections, the specialist explains that, according to the current trend, los prices can at least stay at these levels backed by a possible recession and the probability that being at a point close to the interest rate peak of the Federal Reserve, a perspective of dollar weaker and a path of inflation slowing down
According to Donzelli, the FED interest rate is at a peak
“All these factors can constitute a floor for the price of gold. In addition, the de-dollarization carried out by several central banks during the end of 2022 generated a record demand, thus providing another support for the price of the metal,” argues the specialist.
Can it reach a new high in 2023?
One of the big questions is whether the oro may reach a new maximum in 2023. In this sense, Donzelli explains that a large part of the prospects for 2023 of the world markets will depend on the trajectory of the monetary politics, and that the central banks begin to reduce the interest rate hikes that began last year.
“However, we must highlight that the rate cuts for 2023 will depend to a large extent on the pace of inflation, since if it does not continue to converge to the target levels, it will be difficult to imagine a year of less aggressive monetary policies. Therefore Therefore, in order to observe a positive impact on gold prices, we will need, as a condition, a turn towards a more moderate monetary policy by central banks”, details the specialist.
On the other hand, the expert explains that it is interesting to see the dynamics that the oro during the corrections experienced by the market, both in 2001 and 2008. In this sense, the specialist explains that “in 2001 gold reached minimums of USD 256, showing a year later, in April 2002, a rise of almost 20%, reaching a value of more than USD 300. While, between November 2008 (when the metal bottomed out at USD 708), until February 2009, gold registered an increase in its value of more than 40 %, reaching intraday levels of USD 1,000”.
In this sense, Donzelli explains that it is necessary to clarify that, beyond the statistical data of the dynamics that the oro during the two bear market more recent, we once again emphasize that for a stage of sustained rise to be repeated again, the previously mentioned conditions must be met.
“Monetary policy should start to ease, which will lead to a weakening of the dollar. With high rates and a record US currency, gold will not be able to maintain a sustained upward trend. In addition, a stagnant level of economic activity , and a volatile market will also represent key factors to boost the price of the metal,” he concludes.
The weakening of the dollar, internationally, could boost the price of gold
How much is the gram of gold?
He price of a gram of gold varies depending on how it is traded, with gold in “coins” being the highest for its numismatic value, and the lowest price is usually on gold items such as rings and chains.
Within the marketing of “physical” gold, los ingots It is usually the most common way to save gold, having a special price. In Argentina the city Bank is the only financial institution that sells its own gold in ingot format, with presentations of 1,5,10,50 and 100 grams, all of which are 24 carats.
The downside of selling gold in this format is the enormous difference in spread between the purchase price and the sale price, reaching up to 50%.
How much is 1 kg of gold worth?
The price of oro digital replicate the price of one ounce of gold It is u$s2.063so a kilo of gold would be approximately u$s72,770. In the case of physical gold, one kilogram of gold bullion from the city Bank It is priced at approximately $30,739,380.
