December 09, 2022 07:15:39 PM
Contrary to equities and corporate bonds, the yellow metal has delivered positive returns in five out of the last seven recessions.
SEATTLE (Scrap Monster): The World Gold Council (WGC) announced publication of its latest report, ‘Gold Outlook 2023: The global economy at a crossroads’.
The report says that the global economy is currently at an inflection point. The outlook for the upcoming year and the performance of gold in 2023 will be determined, primarily by inflation and the steps taken by central banks across the globe to contain it. There is a likelihood of recession in major markets. Traditionally, gold does well during times of recession. Contrary to equities and corporate bonds, the yellow metal has delivered positive returns in five out of the last seven recessions.
Although micro-factors are likely to have higher impact on gold prices, the geo-political flare-ups could lend support to gold investment, as seen in the initial quarter of the current year.
The consumer gold demand in China is expected to come out of the challenges of 2022 and return to 2021 levels in the upcoming year. The anticipated improvement in consumer confidence on boosted economic growth coupled with further easing of pandemic-related restrictions will likely support gold demand.
The gold trade body expects European gold bar and coin investment demand to remain robust in 2023.
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