Analysts at the Swiss investment bank UBS believe that the gold market will be able to demonstrate a confident rally in 2023. In particular, by next winter, prices for the precious metal will rise by 13% and reach $1,900 per ounce. As it’s known, gold is traditionally a protective asset in conditions of economic crises and high inflation. However, recently rising interest rates in many countries of the world have reduced the attractiveness of the zero-yield precious metal for investors and increased interest in alternative assets. In addition, the widespread strengthening of the US dollar has made gold less attractive to investors using other currencies. Recall that gold approached its historical maximum price in March of this year: then prices rose to the level of $2,078.7 per ounce. However, since then, the precious metal has fallen in price by about 18%, and the current value of the asset is $1,672. But despite the current decline, UBS predicts an increase in demand for gold next year and a price rise to $1,900 per ounce by the end of 2023. The bank's specialists believe that the premium for the risk of owning the precious metal will grow as the current cycle of tightening of the monetary policy of the US Federal Reserve ends. As history shows, gold prices show a tendency to increase by 19% for every 1% reduction in real rates.
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