Gold Prices Could Breakout in 2023, Says Chief Investment Strategist

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Gold Prices,U.S. Dollar,Breakout

(Kitco News) - Gold prices have been held back by the strength of the U.S. dollar in 2023, but the yellow metal could be poised for a big breakout in the near future, according to Philip Petursson, Chief Investment Strategist at IG Wealth Management.

- Gold prices have been held back by the strength of the U.S. dollar in 2023, but the yellow metal could be poised for a big breakout in the near future, according to Philip Petursson, Chief Investment Strategist at IG Wealth Management.

“Gold has been weighed down by the strength and the U.S. dollar for most of this year,” Petursson said. “They tend to be inversely correlated, so as U.S. dollar strengthens gold tends to weaken a little bit. Now, if we think that the U.S. dollar is going to soften from here, and I think that is our base case going into 2024, that's positive for gold.”

IG Wealth Management expects this bullish scenario to play out even if bond yields remain at multi-decade highs, and they also expect the U.S. economy to pull off a soft landing and avoid recession.

 

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