There will be several good buying opportunities for those wanting to enter the gold market, according to RBC Capital Markets. But the lower gold prices will last only until the end of December and the beginning of next year.
In its 2022 outlook, RBC projected for gold to trade at $1,786 an ounce in the fourth quarter. At the time of writing, spot gold was trading at $1,787.50, down 2.3% year-to-date. Next year looks brighter for the precious metal as sentiment around the Federal Reserve, economic growth, and peak rates shift. This is why it is best to get into gold before that happens.
"The difference between our high scenario and middle/base scenario across all future tenors comes down to a material risk-off event occurring ," the 2023 outlook said."While 2023 looks stronger y/y, our base case assumes some level of normalization in 2024, yet our high scenario, which assumes a higher level of risk-off attention, sees a continued increase."
Exactly right; the opportunity is for GOLD. Not for those who are buying it.