{"id":1791839,"date":"2023-01-01T06:49:42","date_gmt":"2023-01-01T11:49:42","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1791839"},"modified":"2023-01-01T06:49:57","modified_gmt":"2023-01-01T11:49:57","slug":"is-2023-finally-golds-year","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/is-2023-finally-golds-year\/","title":{"rendered":"Is 2023 Finally Gold\u2019s Year?"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">10<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fis-2023-finally-golds-year%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1791839&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47-->\n<p class=\"p3\"><em>Commentary<\/em><\/p>\n<p class=\"p3\">After a turbulent few months, things settled down. <a href=\"https:\/\/www.theepochtimes.com\/t-gold\">gold<\/a> Prices have seen a steady rise in the fourth quarter of 2022.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p class=\"p3\">Recent price movement was helped by the dollar\u2019s retreat, hopes that the Federal Reserve will slow down its aggressive monetary tightening, and renewed demand for the metal from emerging markets.<\/p>\n<p class=\"p3\">Is this the beginning a multi-year process? <a href=\"https:\/\/www.theepochtimes.com\/t-bull-market\">bull market<\/a> What about gold?<\/p>\n<p class=\"p3\">Fairness be told, investors in gold have experienced years of underperformance. Two consecutive years of downturns saw gold close 2022.<\/p>\n<p class=\"p3\">In its 2023 outlook, the World Gold Council said that gold would enjoy a favourable economic environment. \u201cstable but positive performance\u201d The year ahead. It\u2019s not an outright bullish view, as central banks around the world will continue to maintain a strong bias to fight inflation\u2014and keep interest rates high, a deterrent to gold price increasing.<\/p>\n<p class=\"p3\">Recession is almost inevitable in many countries. In a classic recessionary economic environment, gold typically performs well.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p class=\"p3\">The continued decline of the U.S. Dollar is another encouraging sign that gold prices will rebound. The World Gold Council\u2019s research indicates that peaking dollar value has historically been positive for gold, with a positive spot price movement during the 12 months after the dollar has peaked.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p class=\"p3\">Investors in gold should pay attention to the dollar. Gold\u2019s approximately 10 percent price increase during the fourth quarter of 2022 very closely tracked to the dollar\u2019s decline during the same period.<\/p>\n<p class=\"p3\">Cooling inflation\u2014and therefore rate-hike expectations\u2014is only one factor going against the dollar. A second factor is the improvement in economic growth expectations outside of the United States, such like in China and Europe.<\/p>\n<p class=\"p3\">China\u2019s reopening will put further pressure on the dollar. Beijing announced during the last week in December the removal of the inbound quarantine for January. This move is expected to stimulate foreign investment and boost the economy of the country.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p class=\"p3\">Another major factor that affects gold prices is geopolitical risk. Gold can be used as a tail risk hedge in the event of political uncertainty or war.<\/p>\n<p class=\"p3\">Saxo Bank\u2019s Head of Commodity Strategy Ole Hansen recently predicted that gold will top $3,000 per ounce in 2023 due to \u201cwar economy mentality of self reliance and minimizing holdings of foreign FX reserves, preferring gold.\u201d This is in line with another prediction, that countries will invest in locking energy and commodity resources, as well as supply chain security. Saxo is bullish not only on gold but also junior gold miners.<\/p>\n<p class=\"p3\">No doubt this view has been informed by the ongoing war between Russia and Ukraine, and China\u2019s continued saber-rattling against Taiwan. Russia\u2019s largest bank\u2014SberBank\u2014on Dec. 26 announced launching a gold-backed digital financial asset, claiming that it offers an \u201calternative\u201d investment amidst de-dollarization.<\/p>\n<p class=\"p3\">The biggest buyers of gold in this year&#8217;s 2018 were central banks. According to World Gold Council data, central banks bought a record 399 tonnes of gold in Q3 2022. China was the largest buyer of gold among them. Beijing is known for its efforts to reduce U.S. Dollar dependency. China was the front-runner to Russia being excluded from the dollar-dominated global financial market. Russia was faced with price caps, sanctions and freezing of its foreign exchange assets and energy exports.<\/p>\n<p class=\"p3\">There have been <a href=\"https:\/\/www.theepochtimes.com\/should-us-be-worried-about-a-new-reserve-currency_4627007.html\">rumblings<\/a> There are BRICS nations (Brazil India China Russia South Africa) that have joined forces to create a new reserve money backed with commodities like oil and gold. Although no such plans have been announced, certain BRICS countries have been working for years to diversify away the U.S. dollars.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p class=\"p3\">Despite this positive backdrop, there is still the possibility that gold will continue its slide.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p class=\"p3\">The Federal Reserve could increase interest rates and keep monetary conditions tight, despite economic recessions. This would be the worst case scenario. However, this policy path would go against the Fed\u2019s recent history and philosophy.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<div class=\"author_wrapper\">\n<div class=\"one_author_block round\">\n<div class=\"top_row\">\n\t\t\t\t\t<a href=\"https:\/\/www.theepochtimes.com\/author-fan-yu\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/10\/Opinion_noheadshot.jpg\" alt=\"Fan Yu\"   style=\"display:none\"><\/a>\n\t\t\t\t\t<\/div>\n<p>Fan Yu, an expert in economics and finance, has contributed analysis on China&#8217;s economy to this site since 2015.<\/p>\n<\/p><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Commentary After a turbulent few months, things settled down. gold Prices have seen a steady rise in the fourth quarter of 2022.\u00a0 Recent price movement was helped by the dollar\u2019s retreat, hopes that the Federal Reserve will slow down its aggressive monetary tightening, and renewed demand for the metal from emerging markets. Is this the &hellip;<\/p>\n","protected":false},"author":1,"featured_media":1717531,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[547],"tags":[8016,5458,5321,12738,3819,5734],"class_list":["post-1791839","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report","tag-8016","tag-bongino","tag-finally","tag-golds","tag-report","tag-year"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1791839","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1791839"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1791839\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1717531"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1791839"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1791839"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1791839"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}