Welcome to Kitco News' 2023 Outlook Series. Uncertainty continues to dominate financial markets as central bank monetary policies push the global economy into a recession to cool down inflation. Stay tuned to Kitco News to learn from the experts on how to navigate turbulent financial markets in 2023.
Investors are still not jumping into the market, causing some analysts to question how sustainable this new rally is. While gold prices have rallied 5% this year, data from the world's largest gold-backed exchange-traded fund, SPDR Gold Shares , shows that ETF demand continues to fall. Silver's lack of momentum is also a stark contrast to what is happening in other industrial metals like copper, which is trading at a seven-month high of around $4.26 a pound.
And Bank of America is not alone in its bullish outlook. In November, European fund manager HANetf surveyed 100 European and British wealth fund managers. According to the results, 89% of those respondents said they intended to increase their exposure to gold. According to analysts, the U.S. dollar is losing momentum as markets expect the Federal Reserve to slow its aggressive tightening cycle. Markets have all but completely priced a 25 basis point move from the U.S. central bank next month.